Which of the following is the major disadvantage of a straight salary plan?
A) It is expensive to administer.
B) It increases a retailer's variable costs.
C) Many employees have trouble understanding a straight salary plan.
D) It makes it very difficult for a retailer to assign employees to activities.
E) It does not directly relate pay incentives to productivity.

Question

Quizplus · Accepted Answer

The major disadvantage of the straight salary plan is employees' lack of immediate incentives to improve their productivity.

Which of the Following Is the Major Disadvantage of a Straight