Which of the following types of pay-for-performance systems is most likely to induce employees to behave unethically?
A)gainsharing
B)ESOP
C)performance awards
D)commission

Question

Quizplus · Accepted Answer

Commission-based pay-for-performance systems may lead employees to engage in unethical practices, such as inflating sales figures or misleading customers to increase their commissions. This is because their compensation is directly tied to their performance, creating a strong incentive to achieve higher sales at any cost. Other types of pay-for-performance systems, like gainsharing or performance awards, are less likely to lead to unethical behavior as they focus on performance outcomes rather than individual rewards.

Which of the Following Types of Pay-For-Performance Systems Is Most