Asked by Abdullah Elalami on Jul 22, 2024
Verified
What is most likely a consequence of paying most or all of a salesperson's compensation in the form of commissions?
A) It encourages the salesperson to focus on closing the sale.
B) It frees the salesperson to focus on developing customer goodwill.
C) It encourages teamwork over individual performance.
D) It makes the employee appreciate the reward as the reward relates to economic conditions.
E) It will quickly become expensive for the employer.
Commissions
Incentive pay calculated as a percentage of sales.
Salesperson
An individual who sells goods and services to consumers or businesses, often working on commission.
- Comprehend the rationale and objectives behind incentive compensation and its effect on the conduct of employees.
- Recognize the role of incentive programs in motivating staff and enhancing organizational performance.
Verified Answer
AM
Allie MoralesJul 22, 2024
Final Answer :
A
Explanation :
When most or all of a salesperson's compensation is in the form of commissions, the salesperson is encouraged to focus on closing the sale and generating revenue for the company, as their income is directly tied to their performance. This may lead to more aggressive sales tactics or a focus on short-term goals rather than long-term customer relationships.
Learning Objectives
- Comprehend the rationale and objectives behind incentive compensation and its effect on the conduct of employees.
- Recognize the role of incentive programs in motivating staff and enhancing organizational performance.
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