Rodrigo, the owner of a hardware store, pays incentives to the members of his sales team based on their ability to sell products to industrial buyers. Each salesperson receives 20 percent of the amount earned from his or her total sales. In this scenario, which of the following incentive systems is Rodrigo most likely using to reward his employees?
A) Gainsharing
B) Profit sharing
C) A piece-rate reward plan
D) A sales commission

Question

Quizplus · Accepted Answer

Rodrigo is using a sales commission system, where each salesperson receives a percentage (20 percent in this case) of the sales they generate. This is a direct incentive based on individual sales performance.

Rodrigo, the Owner of a Hardware Store, Pays Incentives to the Members