Centralized structure and a compensation system


A business has a centralized structure and a compensation system that rewards sales volume. However, sales volumes are low compared to competitors who respond more quickly to changes in consumer demand. Which of the following is the most likely source of the low sales performance ?

A) A poorly designed compensation program

B) An ineffective recruitment and selection program

C) An inappropriate organization design

D) A poorly designed performance management program

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Business Management: Centralized structure and a compensation system
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