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

Question

Quizplus · Accepted Answer

The most likely source of the low sales performance is an inappropriate organization design. The business has a centralized structure, which suggests that decision-making is slow and rigid. Additionally, the compensation system rewards sales volume, which may lead to a focus on short-term gains rather than long-term success. Competitors who respond more quickly to changes in consumer demand likely have a more decentralized structure that allows for faster decision-making and more flexibility in responding to changes in the market. Therefore, the business should consider redesigning its organization structure to better align with the demands of the market.

A Business Has a Centralized Structure and a Compensation System