The sales staff at Macmoo Real Estate is compensated primarily based on the value of the properties they sell. However, in order to encourage the salespeople to act in the best interests of the company, Macmoo bases 10 percent of each salesperson's yearly bonus on whether the company as a whole reaches its yearly financial goals. The incentive plan is based on which assumption?
A) In comparison to other Macmoo employees, Macmoo salespeople are less interested in the overall success of the company.
B) Macmoo salespeople believe that they can have a significant effect on the overall performance of the company.
C) In the past, Macmoo salespeople have not consistently acted in the best interests of the company.
D) The only effective way to motivate employees is through financial incentives.
E) Macmoo employees are similar to other salespeople in the industry.
Correct Answer:
Verified
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