Asked by Grant Messenger on May 01, 2024
Verified
Straight commission plans are plans that
A) provide a straight salary to employees.
B) are useful when the organization wants salespeople to concentrate on listening to customers.
C) are used to attract risk-averse employees.
D) are common among insurance and real estate agents.
E) are uncommon among car salespeople.
Straight Commission Plans
Compensation plans where an employee's earnings are directly tied to the sales or revenue they generate, without any base salary.
- Evaluate the compatibility of varied reward structures with distinct employment types and employee positions.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
Straight commission plans are common among insurance and real estate agents, where the pay is based solely on the sales made by the employee, without a fixed salary or hourly wage. This incentivizes employees to work harder and make more sales. It is not useful when the organization wants salespeople to concentrate on listening to customers, as they may focus more on making sales than meeting customer needs. It is also not typically used to attract risk-averse employees, as the pay is uncertain and can fluctuate based on sales performance. While straight commission plans may not be as common among car salespeople, they are not entirely uncommon.
Learning Objectives
- Evaluate the compatibility of varied reward structures with distinct employment types and employee positions.
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