The Well Paid Receptionist
Values, Attitudes and Work Behaviour from
Johns, G. & Saks, A. M. (2010). Organizational Behaviour. Pearson Education: Toronto.

Case Study
The Well-Paid Receptionist
Harvey Finley did a quick double take when he caught a glimpse of the figure representing Ms. Brannen’s salary on the year-end printout. A hurried call to payroll confirmed it. Yes, his receptionist had been paid $127 614.21 for her services last year. As he sat in stunned silence, he had the sudden realization that since his firm was doing so well this year, she would earn at least 10 to 15 percent more money during the current fiscal year. This was a shock, indeed.
Background
Harvey began his career as a service technician for
And he told her he understood that a definite disadvantage of working for a new firm was the complete absence of financial security. Although he was extremely reluctant to guarantee a larger salary because of his own uncertainty regarding the future, he offered her a sales override in the amount of two percent of sales. He explained that she would largely determine the success or failure of the firm. She needed to represent the firm in the finest possible manner to potential customers who telephoned and to those who walked in the front door. For this reason, the sales override seemed to be an appropriate addition to her straight salary. It would provide her with incentive to take an active interest in the firm.

Cathy accepted the offer immediately. Even though she was expecting a salary offer of $32 500, she hoped the sales override might make up the difference. “Who knows,” she thought, “two percent of sales may amount to big money someday.” It did not, however, seem very likely at the time.

Troupville Business Systems began as a very small distributor of copy machines. The original business plan was just to sell copy machines and provide routine, on-site service. More extensive on-site service and repairs requiring that a machine be removed from a customer’s premises were to be provided by a regional distributor located in a major city approximately 100 miles from Troupville.

Troupville Business Systems did well