1.
if a company rewards employees based on a combonation of current and future values of
customers, how might that change decision making?
Solution
The value of the customer as a financial asset in his/her lifetime to the firm is called as the actual
value of the customer. Potential value is the unrealized business which the firm could make with
the existing customer.
The actual value should be calculated on long term basis. This is to derive the total return made
by them. Here, the customers are considered as a financial asset. The potential vales are
calculated often as to analyze their purchasing trend and to increase the return from them.
The customer value delivered by an employee is measured with the help of customer relation and
satisfaction. Employee delivering good value to the customers would be able to develop strong
relationships with them. The customers would be satisfied from his services.
Value delivery to the internal employees by HR person would ensure the following things:
Future values are unpredictable. Thus, the decreases in future value would affect the business as
well as the salary or wages paid to the employees. It can either act as motivational factor or as a
demotivation factor.