The owner of a hardware store decides to pay his employees partly based on their ability to sell parts to industrial buyers who patronize the business. This situation is called:
A) gainsharing
B) Scanlon plan
C) piece rate
D) commissions
E) Tucker-Davison plan

Question

Quizplus · Accepted Answer

Commissions are a form of incentive pay where employees earn a percentage of the sales they make. In this case, the hardware store owner is paying employees based on their ability to sell parts to industrial buyers, making commissions the appropriate choice. Gainsharing and the Scanlon plan are forms of group incentive programs aimed at improving overall performance, piece rate pays employees based on the amount of work completed, and the Tucker-Davison plan is a form of gainsharing specific to small businesses.

The Owner of a Hardware Store Decides to Pay His