Customer Insight at Apple UK

Executive Summary Apple is recognized to have a satisfactory customer service experience. Customers have described the customer service as quick and easy. Apple employees are polite and welcoming. They use instructions developed by the ‘Genius’ program. However, the technical customer service that is sent to home-based customers may sometimes lack the right skills or right replacement parts.Advertising We will write a custom report sample on Customer Insight at Apple UK specifically for you for only $16.05 $11/page Learn More Apple reduced reliance on expertise from dealers creating a gap in technical service. Dealers were required to hire engineers. Apple appears successful at segmenting customers at the individual level. On the other hand, its geographical segmentation in China has created negative publicity. Customers in China appear to be underprivileged compared to customers in other countries. Samsung customer support services appear m ore specialized to product models compared with Apple’s customer services. Introduction Apple offers customer services known as complementary support which addresses â€Å"basic setup, installation, assembly, and connectivity† (Complementary Support (United Kingdom)). The services are conducted through phone calls, face-to-face communication, and through the website. Customers are eligible for the complementary services within 90 days after purchase of an Apple product. The company also offers a one-year warranty service. Apple has trained its employees to recognize different categories of customers. The angry customer requires attentiveness. The indecisive customer requires an objective service person who has no intention to directly increase sales. The suspicious customer may require a service person who is well-informed about the products and the company (Government of South Australia 2006). Apple’s satisfactory customer service may rely partly on the accurac y of their technique to categorize customers. Their success on customer service depends on the ability to address an individual customer’s personality rather than generalizing customers (McGuinn 2009, p. 61).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More High tech products can be â€Å"divided into standardized and non-standardized products† (Viardot 2004, p. 195). Customer service of standardized products can be performed by dealers in a country because understanding the product does not require specialized training. Non-standardized products are designed to meet the requirements of a particular customer. They are sold at a higher price and require the company to deal directly with the customer. The company needs to have a personal contact with the customer (Viardot 2004, p. 196). Apple has adopted the personal contact requirement even for its standardized products. Throug h this technique, it has increased the speed of helping customers and dealing with complaints. Apple is able to contact customers through phone calls or emails in case of problems such as a repair or replacement program. High-tech companies are sometimes required to provide services at the customer’s home or workplace. The services should be carried out promptly and at a low cost (Oracle and high tech industry 2003). Customer service is a satisfactory experience when a â€Å"technician or engineer with the right skills, knowledge, and service parts arrives† (Oracle and high tech industry 2003, p. 4). Customers want their problems solved with less repetitive actions. Apple obtains its competitive edge through customer loyalty as a result of better customer service than competitors. It has increased the likelihood of sustained profitability. Loyal customers use multiple Apple products and are willing to purchase new products. Findings Apple uses a set of words that are u sed to express how an employee feels about a customer’s comment. Kinder (2012) reports that ‘crash’, ‘bug’ or ‘problem’ are some of words that are not supposed to be used by employees while dealing with customers.Advertising We will write a custom report sample on Customer Insight at Apple UK specifically for you for only $16.05 $11/page Learn More Employees are trained to use words with less negative expression such as â€Å"stops responding† instead of â€Å"has crashed†. Employees are also trained to use emotional expressions such as â€Å"I understand how you feel†. There are also background support systems that give feedback to the front desk employees on how they have handled the customers. The background managers give suggestions and solutions to improve customer service the following moment (Biddle 2012). It creates a constant review of customer service. Findings suggest that som e customers have no problem with the outcome of the controlled human words and feelings. However, some customers think that employees are just like robots with programmed feelings. Emotional expressions that are not authentic may soon turn ineffective to match customer sophistication (McGuinn 2009, p. 57). Apple should allow employees to use their creativity rather than restrict them. For a company to know its customers, Barlow Stewart argue that a company needs to â€Å"make a list of interactive touch points† (2010, p. 237). It can use video clips or recordings of crucial moments in customer service that can be used for elaborations. Apple through its ‘Geniuses’ program has reduced the common mistakes that happen through customer service by creating a list of appropriate action and words. Apple also trains employees to read the customer’s body language (Biddle 2012). Another way of understanding customers is to encourage them to post comments in the cus tomer feedback system (Collier 2011, p. 49). A company should review the criticism posted on social media networks to understand their customers better. Apple reduced the percentage of small dealers from 7% to 1% and increased the proportion of large dealers to provide customer service (Viadort 2004). Apple used large dealers who are trained to provide demonstrations, customized solutions, and after-sale support. Apple intended to reduce instances of poor customer service through large dealers. A company’s quality image may be ruined if it relies to provide customer service through dealers. Dealers may lack knowledge about the products they sell (Viardot 2004, p. 196). Solomon (2012, p. 49) discusses that customer loyalty is partly attributed to a satisfactory experience at the customer care. Satisfactory customer service results in sustainable sales revenues.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Apple is also considered to have failed to fill the gap left by servicemen after it downsized on contracts with dealers. Apple used to earn more than 50% of the income that service companies earned through paid customer service before 2004. The services cost about $50 an hour for a product whose warranty has expired. Customers made a direct payment to the person who came to repair their products (Engel 2007). Apple required that dealers send their service employees to Apple’s training programs annually. The new technical service employees lack high skills that the dealers were required to maintain. The Apple customer care department has invented the anticipatory customer service where a customer is able to set an appointment to visit an Apple Store. The customer is anticipated by Apple employees and is received warmly upon arrival (Solomon 2012, p. 51). It increases the quality of service because the employee knows your problem even before you arrive. Solomon argues that a cu stomer after an experience at Apple feels that he/she has been â€Å"heard, known and understood† (2012, p. 51). Through the anticipated customer service, the company benefits by allocating more employees to areas with more work. The customer benefits by getting an undivided attention. Less time is wasted while waiting to be served. Apple employees are also known to objectively help customers choose products that match their needs without necessarily selecting products with a higher price. Apple does not offer any sales commission and has no sales targets for employees. It intends to discourage employees from persuading customers to buy products that do not match their needs (Apple’s customer service secrets revealed, 2011). Apple is able to create an atmosphere of trust and long-lasting customer loyalty. Engel (2007, p. 44) argues that Apple iPod nano battery replacement program came after negative publicity. The company’s initial response was that customers sh ould buy new iPods. If it was the company’s fault, customers deserve a free replacement even without media advocacy. Engel (2007, p. 56) argues that Apple is unlikely to admit its fault and would rather blame the vendors. There were problems with some of their products such as eMac which were reported to fail a few weeks after the expiry of their warranty (Engel 2007, p. 45). Apple is supposed to consider the frequency of failure of their product. If the frequency is high, they should consider increasing the warranty period so that their products do not appear to have been designed only to last within the warranty period. Graham (2011) reports that Apple UK could be rated to have the best customer service in the industry. According to interviewees, customers are given quick, easy, and free service. Apple UK may have the leading customer service but it China Apple has faced criticism for discriminating against Chinese consumers. Unlike other countries, consumers in China do no t have the privilege of product replacement if it is defective. Customers are supposed to be given a new one-year warranty after repair of an iPhone but it does not apply in China (Mozur 2013). Mozur (2013) and Engel (2007) report a similar response from Apple where it only admits its fault after intensive media attacks. Mozur (2013) reports that Apple’s CEO, Tim Cook, admitted the differences in customer service in China from other countries after attacks by China Central Television and The People’s Daily. The company responded that it had plans to standardize customer services in China to global standards. Apple appears to be experiencing failure as a result of using the traditional customer segmentation where customers are categorized geographically (Bailey et al. 2009, p. 239). Samsung has a ‘live chat’ program for customer support. It may ease customer anxiety to visit Samsung Stores (Samsung: Contact Us 2013). It is also likely to increase customer o penness. Samsung offers scheduling for repairs. Service tracking is a system that allows customers to follow up on any pending services or product delivery. Samsung’s website appears more detailed than Apple’s. Samsung tries to have most of the support categories on one page. A customer needs to type the product’s model and name to be directed to the right webpage which matches his/her product’s description (Samsung: Support 2013). Samsung’s videos on user manuals are readily available through the home page. A customer on Apple’s website may require some navigation to obtain them. Samsung’s online support differs from Apple’s because of the clear categorization of products’ support services. Customers are likely to meet a service person who clearly understands the product because of extensive specialization. Samsung customer service to defective products includes recalls to defective top loader washing machines. The wash ing machines manufactured between February 2010 and February 2013 are reported to have caused several fire incidences in Australia (Chanthadavong 2013). Samsung has extended a warranty to the African market for the Galaxy S4. It covers accidental damages to the screen and liquid damages for a month (Dowuona 2013). The announcement was warmly received by customers. Conclusion Apple customer service in the UK is the best in the industry and among many industries. Its invention of the ‘Genius’ customer service program has come up with methods and procedures to improve customer satisfaction. The program has developed procedures that reduce mistakes that upset customers. Customer service at Apple Stores is considered simple and quick (Gallo 2012, p. 15). Samsung, the main competitor, uses online services that are specifically matched to each model. Samsung online system appears to be more detailed and more specific compared to Apple’s website. As a result of specializ ation of customer support programs to product models, Samsung customers may be served by employees who are more knowledgeable about their products. Recommendations Apple should increase support group specialization in a few products to improve customer service. Apple should improve technical customer service by ensuring that the large dealers maintain high standards by hiring skilled employees. The company should also carry assessment exercises to evaluate effectiveness of the annual training programs. To catch up with Samsungs 24-hour-chat program, Apple can also start an online program that uses a system such as that of Skype with a webcam to communicate online. Customers should be able to view the employee and elaborations may be conducted as if it were face-to-face. Reference List Apple’s customer service secrets revealed 2011, http://www.andyhanselman.com/2011/06/16/apples-customer-service-secrets-revealed/. Bailey, C, Baines, P, Wilson, H Clark, M 2009, ‘Segmen tation and customer insight in contemporary services marketing practice: why grouping customers is no longer enough’, Journal of Marketing Management, vol. 25, no.34, pp. 227-252, https://dspace.lib.cranfield.ac.uk/bitstream/1826/6435/1/Segmentation_and_customer_insight.pdf. Barlow, J Stewart, P 2010, Branded customer service: the new competitive edge, Berrett-Koehler Publishers, San Francisco. Biddle, S. 2012, How to be a genius: this is Apple’s secret employee training manual, media release, 28 August, http://gizmodo.com/5938323/how-to-be-a-genius-this-is-apples-secret-employee-training-manual. Chanthadavong, A 2013, Samsung recalls top loader washing machines, media release 2 May, http://www.ttmag.com.au/2013/05/02/samsung-recalls-top-loader-washing-machines/. Collier, M 2011, The ultimate customer service guide: how to connect with your customers to sell more, John Wiley Sons, Hoboken. Complementary Support (United Kingdom) 2013, http://www.apple.com/uk/support/c omplimentary/. Dowuona, N 2013, Samsung provides accidental damage warranty for Galaxy S4, media release 30 April, http://business.myjoyonline.com/pages/news/201304/105262.php. Engel, G 2007, The naked serviceman, Lulu Press, Hillsborough. Gallo, C 2012, Steve Jobs and the Apple Experience, McGraw-Hill Professional, New York. Government of South Australia 2006, Customer Service, PDF file, http://www.ofv.sa.gov.au/pdfs/mods_Customer%20Service_Introduction.pdf. Graham, F. 2011, Does Apple have the best customer service in Britain? Vote now, media release, 28 March, http://crave.cnet.co.uk/gadgets/does-apple-have-the-best-customer-service-in-britain-vote-now-50003313/. Kinder, L. 2012, Apple’s customer service revealed in leaked memo, media release, 29 August, http://www.telegraph.co.uk/technology/apple/9505679/Apples-customer-service-secrets-revealed-in-leaked-memo.html. McGuinn, C 2009, ‘The future of customer service’, Irish Marketing Review, vol. 20, no. 1, pp. 57-66, http://www.mii.ie/attachments/wysiwyg/6051/IMRVol20_McGuinn.pdf. Mozur, P 2013, Tim Cook apologizes for China Customer Service, media release 2 April, http://online.wsj.com/article/SB10001424127887324020504578396491791478464.html. Oracle and high tech industry 2003, http://www.oracle.com/us/industries/high-tech/046252.pdf. Samsung: Contact Us 2013, http://www.samsung.com/us/support/contact. Samsung: Support 2013, http://www.samsung.com/us/support/. Solomon, M 2012, High-tech, high-touch customer service: inspire timeless loyalty in the demanding new world of social commerce, American Management Association, New York. Viardot, E 2004, Successful marketing strategy for high-tech firms, 3rd edn, Artech House Publications, Boston. This report on Customer Insight at Apple UK was written and submitted by user Ph1ll1p to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Compare Decision Making Process Vs Consumer Buying Process Coursework

Compare Decision Making Process Vs Consumer Buying Process Coursework Compare Decision Making Process Vs Consumer Buying Process – Coursework Example The decision making process that a consumer goes through before making a purchase as opposed to the actual purchase is the contrast between the decision making vs. consumer buying process. In marketing parlance, there are the processes of decision making and consumer buying that reinforces and complements each other. The decision making process typically involves the stages ranging from identifying the need, searching for information, evaluating alternatives and finally taking the decision. A successful marketer would recognize the importance of each step of the decision making process as concentrating only on the final step i.e., the decision making might be a case of too late for the products that the customer would have evaluated but not purchased.There are several models of consumer decision making that include the rational or the economic model, the psychological model and the consumer behavior model. The rational model has come in for criticism lately due to the fact that the c oncept of consumers making rational choices has been questioned by the experts. On the other hand, the psychological models that take into account the cognitive aspect as well as the whims and fancies of the buyer is considered more appropriate.The consumer buying process is the outcome of the decision making process and is the last stage of the decision making process. As such, it can be said that the actual buying is the outcome of a complex process that takes into account several factors, both external and internal. Thus, when we contrast the decision making process with that of the consumer buying process, we are making a distinction of the inputs and the outputs to take an analogy from technology.

HYPNOTHERAPY Essay Example | Topics and Well Written Essays - 2000 words

HYPNOTHERAPY - Essay Example Thus, in this way monotony to the visual sense can be achieved by hypnotist. When depriving a subject of a habitual pleasure such as smoking, following suggestion could be given to compensate for the deprivation: â€Å"Cigarette smoking will fill you with disgust. From this moment on and always in the future, any tobacco smoke entering your mouth or nostrils, will taste and smell like burning rubber. You should refuse to accept the cigarette†. To generate emotion in the subject, the hypnotist must steer the subject towards nervous apprehension. The hypnotist should alter the voice, move closer to the subject and apply in a carefully articulated monotone with a slow, monotonous rhythm. The hypnotist should make sure that what aromas or smells are present in the room at the beginning of a session, do not suddenly fade to produce an obvious sensory change. In addition, one should make certain that no new or unfamiliar smell enters the room to alter the established pattern of olfactory impressions. This is the way to apply monotony to the sense of smell. Whilst being hypnotised, the subjects eyelids may be inclined to flutter or twitch. This indicates that he is still consciously aware of the existence of his eyelids, and of the need to control them if the eyes are to remain closed. The hypnotist should thank the difficult subject reassuringly, and should try to give him the feeling that something positive has been achieved. Thus, the hypnotist can protect his image against the possibility of failing to hypnotise the difficult subjects. A hypnotist should tell that he I going to place his/her hand on the left shoulder of one member of a group of hypnotised subjects, until then the subject has to remain asleep ignoring all the suggestions. Then, when the individual feel that it is his turn now, then the subject will immediately start responding to all the suggestions made by hypnotist. For mass hypnosis, forego the

Health Essay Example | Topics and Well Written Essays - 1000 words - 1

Health - Essay Example It also display Australian Health Care Agreement for equitable access for public health care irrespective of geographic location. Another article on medical dominance features the health division of labour, and a body of literature has developed exploring the structural components contributing to the subordination of the allied health professions. This article is taken from nursing literature describing the nature and source of nurses perceptions, complaints and dissatisfactions with their profession. It encompass the sociological analyses of the situation of nurses within the organization of the health care delivery system. Results indicated that Australian and British nurses were not only disappointed with many facets of then- work atmosphere, especially their pay and working conditions. The article manifests the medical profession to be highly satisfied for British nurses as compared to Australian nurses, due to lack of autonomy. It is therefore recommended that to have a congenial working atmosphere, a harmony must be established between the care takers, nurses and other staff and medical professionals Adamson, B., J., Kenny., D., T., Wilson-Barnett, J., 1994, The impact of perceived medical dominance on the workplace satisfaction of Australian and British nurses Journal of Advanced Nursing, Vol. 21(1), 172-183. Health care funding: the article describes about the various parameters which must be considered for providing health care funding. According to this article the first Health Policy consensus group paper examines 11 healthcare funding systems. These include: Normand, C. and Busse, R., ‘Social health insurance financing’, in Mossialos, E. Dixon A., Fugueras, J. and Kutzin, J. (eds.), Funding Health Care: Options for Europe, European Observatory on Health Care Systems, OUP, 2002. Health Care Policy: the article states that by collecting and analyzing health outcomes data it becomes

Hooliganism Essay Example for Free

Hooliganism Essay At first we are being asked as the reader, what we prefer. Wealth or happiness. David Brooks uses the actress Sandra Bullock as an example of the dilemma. Sandra Bullock won an Academy Award for best actress, but then a news report came and claimed that her husband is a cheating jerk. That puts things in another perspective, because who does not want to be recognized for your work, but is that better than loosing your love. David points out that winning this Award is one of the best things that can happened to an actor/actress; not only because of the credit and the money, but it has been proved that Award winners live longer than people who only have been nominated. After that David is very clear with his opinion on this situation. If you need to think about the question, what you want to choose, between the husband or the Award, you must be crazy in his eyes. He says that the relationship between income and happiness is tricky. If you are poor and you earn a lot of money you become happy. Let us say that you are in the middle-class and your income increases. That will not have the same effect as if you go from poor too normal, because you have lived with such a small amount of money you learn to appreciate even a small amount of money; compared to a middle-class person who wins the lottery, because it does not change his life majorly. 2. How does David Brooks engage the reader in text 1? David is very good at engaging the reader. He uses an example from real life and involves the reader by asking questions most of the time. He makes the reader think about what we just read by asking questions about the readers opinion. He is a very distinguished reporter for the New York Times, examined the relationship between wealth and happiness in his article â€Å"The Sandra Bullock Trade†: a seemingly simple – almost clichà © – concept. He is however able to draw the reader in by the use of 2 simple literary techniques. Primarily, Brooks captures the readers’ attention by his title and his intro paragraph. Many newspapers readers make snap judgments about  whether they should or they should not read an article or not by just looking at the title. It was not a mistake that Brooks used Sandra Bullock as his example. She is a famous, beautiful, and successful actress whose general popularity will make his article – not only appealing – but relate able to his audience. Another technique that Brooks utilizes is his choice of language. It is very colloquial and understandable. By using phrases like â€Å"nothing to sneeze at† instead of words like â€Å"insignificant† the author makes his text more relate able to his readers – as if they are speaking with a friend. If they are more likely to understand his meaning and his lively tone then they will more likely to continue to read. The task of a newspapers writer is different than an authors task. Their job is to lure the reader in and to keep them interested for a short amount of time the reader will spend on each article. Brooks does this effortlessly by using simple and accessible vocabulary and comfortable and using a relate able vignette to initially catch his readers’ attention. 3. Based on the opinions voiced in texts 2 and 3, discuss whether spending money makes people happy. In text 2 Stephanie Rosenbloom discuss with herself if it is possible to buy happiness and if â€Å"yes† then would it be an experience or just a simple piece off clothing. It is a longer lasting happiness if you buy a vacation, than a couch. That is the idea. Living in the world we live in now, we need these little things that make our everyday life a little better. Of course a vacation is good because it is something you will not forget that easy and you will cherish the memories for the rest of your life, compared to a simple couch that might only last 5 years. Almost every time you spend money it will make you happy. You do not buy something that does not make you happy. The research there has been made tells us that greater wealth implies greater happiness only at quite low levels of income. But when the researchers have asked people about their happiness they have simply been asked how satisfied they are with their lives. Which is a very difficult question. Because it is not possible by asking people about their life satisfaction, to measure what the amount of money they have in their lives play in their everyday life, in terms of happiness and satisfaction. Spending money can make you happy, but the level of happiness depends on what you buy and it will not be enough. There is more to life than just being in a good mood. Happiness can be more than that, but not just by spending money.

The Crusade for Equal Rights in the United States Essay -- American Hi

The struggle for equal rights has been an ongoing issue in the United States. For most of the twentieth century Americans worked toward equality. Through demonstrations, protests, riots, and parades citizens have made demands and voiced their concerns for equal rights. For the first time minority groups were banding together to achieve the American dream of liberty and justice for all. Whether it was equality for women, politics, minorities, or the economy the battle was usually well worth the outcome. I have chosen articles that discuss some of the struggles, voyages, and triumphs that have occurred. The people discussed in the following articles represent only a portion of those who suffered. The first speech that I chose was written by Martin Luther King Jr. in December 1955. The speech was given in Montgomery, Alabama and spoke to African-Americans who gathered in protest after the arrest of Rosa Parks. She refused to give up her seat to a white passenger on a city bus and was subsequently arrested. The African-American community decided to protest the decision and a mass rally ensued. According to Foner, â€Å"Martin Luther King Jr. invoked Christian and American ideals of justice and democracy in his speeches.† (901) King used these themes to address the protestors and spoke of Rosa Parks’ character, morals, and integrity. Martin Luther King Jr. was a national symbol of the civil rights struggle and advocated for the African-American community by protesting in a non-violent manner. The demonstrations and protests that were led by King evoked the lack of freedom, justice, and equality that African-Americans endured. Even with all of the injustices that occurred, African-Americans were proud to be American and use... ...rations. Segregation, which was once considered the norm, is now a thing of the past because of such demonstrations. Women were considered inferior to men and were forced to stay at home in the traditional role of housewife until the 1960s. The fact that women united together for equality allowed them to become active in politics, professional roles, and have control over their own bodies. Protestors in the 90s brought attention to inequality on a different level. The environment and economic inequality were now pressing issues. Demonstrations brought public attention to environmental, global, and economic issues. Without unity from these groups the United States would be a completely different country. It is with great admiration that I discuss the events and struggles that these people endured, for I don’t know if I would have the courage to do the same.

Incentive Plans

Companies’ presidents, CEOs, and managers for decades have used incentives to attract, reward, and retain employees. Dessler (2011) recognizes that most employees receive salary or hourly wage as well as other incentives (Dessler, 2011). Dessler (2011) reports a variety of incentive plans ranging from piecework plans to the earning at risk pay plans (Dessler, 2011). While there are many incentive plans that can be discussed, this paper will only highlight the advantages and disadvantages of merit pay as an incentive and profit sharing plans.Merit Pay  Dessler (2011) defines merit pay as a salary increase awarded based on performance and becomes part of the employees’ base pay salary (Dessler, 2011). Dessler (2011) asserts that merit pay has advocates who argues that rewards tied to performance can motivate performance and detractors claim that merit pay undermine teamwork and misconception of pay as a whole (Dessler, 2011). As Dessler (2011) defines merit pay with adv ocates and detractors other authors such as Longenecker and Goff (1992) uses the term performance appraisal instead of merit pay.Longenecker and Goff (1992) states that merit pay or performance appraisal is believed to be effective by managers and subordinates because it help clarify employee input about his or her job (Longenecker and Goff, 1992). At the same time, both managers and subordinates viewed merit plans as ineffective for linking pay to performance, ineffective for improving motivation and performance as well as ineffective for managers and subordinates working relationship (Longenecker and Goff, 1992).While Longenecker and Goff (1992) referred to merit pay more as performance appraisal others such as Hayes (1999) questions incentive programs altogether. In the article ‘Pros & Cons of Pay for Performance’ the author claims that no one really knows if incentive programs truly work (Hays, 1999). This article further asserts that incentive programs such as this plan create competitiveness that is not necessarily best for a company (Hays, 1999). This article proposes that rewards control behavior through seduction, that it ruins relationships, create competitiveness, that it reduces risk taking, creativity, and  innovation (Hays, 1999).Profit Sharing Plans Profit sharing plans are incentive plans where employees receive a share of a company’s annual profits (Dessler, 2011). Dessler (2011) asserts that there is ample evidence that profit sharing plans boost productivity, but the effects on profits is insignificant once one factor in costs (Dessler, 2011). In fact, the article ‘Profit-Sharing Plans Work’ the author proposes that cash profits are the best way to let employees know that they are important to the company and profit sharing is a tool that could turn the country around (Profit-Sharing Plans Work, 1988).Further, the article emphasizes how workers worry less about management receiving massive profits at the ex pense of the employees’ earnings and for management it provides a financial cushion that limits losses in economic downturns (Profit-Sharing Plans Work, 1988). All the while, this article argues that profit sharing plans where proceeds go into retirement funds instead of employees’ pockets fail to motivate and improve performance (Profit-Sharing Plans Work, 1988).In any case, this article suggests that company morale can be damaged when upper management or salaried employees are the only participants in the profit sharing plans of the company (Profit-Sharing Plans Work, 1988). Yet, Flesher (1993) article describes the profit sharing plans as the type of contribution plans that enables employees to share in accumulated profits of the company, and it is divided among the participants on a pro rata basis based on the participants and the total income of all participants in the plans (Flesher, 1993).Such plans offer the advantages of immediate tax deductions for corporatio n and no immediate tax payable by the employee (Flesher, 1993). Nevertheless, Hays (1999) questions the use of incentive programs for improving performance and asks the question: why do so many companies claim that incentive programs administered effectively or improve company performance? Hays (1999) reports in his article that personal recognition can be more motivational than money, clearly the times have changed because it is this author’s opinion that people are first motivated by monetary reward, then material reward, and then personal recognition.Conclusion Dessler (2011) describes individual incentive programs as performance based pay and team based incentives as performance pay for the team, as variable pay pays a group for its productivity (Dessler, 2011). Dessler (2011) continued by describing the various types of incentive pay plans ranging from the piecework plan to the earning at risk pay plans (Dessler, 2011). After analyzing some of the authors’ article and this author concluded that incentives are not just for the employees but for the employers as well.Pay incentives such as the merit pay plans and the profit sharing plans can be used as tools in an effective manner to increase productivity for a company, but as for motivational purposed for the employees, this could be in some ways for some employees a positive thing and for other employees a negative thing.Also, when asked the question 🙠 do profit sharing plans improve performance?), people like Hays (1999) seem to think that personal recognition can be more motivational than money. While people like Flesher (1993) seem to think that merit pay and profit sharing offers advantages of immediate tax deductions for corporation and no immediate tax payable by the employee (Flesher, 1993). Last, incentive pay has been and will always continue to be used in corporate America as a tool to attract, reward, and retain employees.