Business Management
the employees. Besides some small cosmetic changes, there was one program in particular that I would suggest to AAA that I believe would assist management in achieving this goal. I have noticed that there is what I believe to be an oversight in the way the individual bonuses are distributed. AAA sets a goal and expects all agents to achieve that goal. The problem with this program is that some areas such as large cities provide travel agents with much more business from which to earn commissions than that of offices the size of the Reno office. These large offices may have more than ten times the clientele than that of the smaller. The result is that the smaller offices rarely have a chance to make any significant bonuses while the large city offices are making arguably too high of a bonus. This has been devastating to the motivation of the smaller offices. Why should we try so hard when we know we won't make the goal, says Ms. Pacior. She makes a good point. Perhaps the corporate office could make goals based on individual offices or at the very least districts so agents perceive themselves as having the distinct opportunity to earn bonuses at the end of each year. This would undoubtedly produce motivation and consequently earn more income for AAA. As I stated this is one problem I found during my analysis of AAA, yet I do not hold that it is the sole problem the company faces. A broader study of the company may reveal deeper problems that my informational sources have allowed. Collectively, AAA does an outstanding job of motivating their employees, a task that many companies that are larger and older have not yet mastered. The Frederick Taylor method has proven, at least in this situation, to be an effective manner in which to retain high morale, satisfy, and reward the employees of the American Automobile Association.