What type of compensation plan makes sense when a position


1. What type of compensation plan makes sense when a position focuses on customer service and? support?

A. Straight bonuses

B. Straight salary

C. Salary plus commission

D. Salary plus bonuses

E. Straight commission

2. What is a potential negative outcome when a company limits how much salespeople can earn in? commissions?

A. Salespeople will demand stock options to compensate.

B. Companies will have to pay bonuses more frequently to motivate employees to sell more.

C. Salespeople will spend more time on administrative duties instead of new accounts.

D. Salespeople will spend more time with proven customers instead of with? high-potential customers.

E. ?Top-performing salespeople may quit selling when they reach their quota.

3. What is the first factor a company should consider when deciding on annual bonus plans as? short-term incentives?

A. Job rankings

B. Eligibility

C. Fund size

D. Discretionary funds

E. Individual awards

4. What is the major disadvantage of providing team? incentives?

A. Team incentives can have demotivating effects.

B. Team incentives make problem solving more difficult.

C. Team incentives require negotiation with some individuals.

D. Team incentives make planning more difficult.

E. Team incentives tie production standards to the amount workers are paid.

5. Because one of the best ways to achieve engagement by workers is to ensure? workers' goals are the same as the? organization's goals, the? _______ feature of the Scanlon plan focuses on helping employees understand how the business operates.

A. philosophy of cooperation

B. identity

C. sharing of benefits formula

D. involvement system

E. competence

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