A major disadvantage of commission plans as an incentive pay system is the:
A) use of draws in conjunction with commissions.
B) weak link between performance and reward.
C) inability to combine salary with commission.
D) impact of uncontrollable factors on sales.

Question

Quizplus · Accepted Answer

A major disadvantage of commission plans is that things beyond the control of an employee can adversely affect sales. For example, a product might be displaced almost overnight by a technological breakthrough. Other environmental factors, such as the national economy, the weather, and consumer preferences, can also affect an employee's sales.

A Major Disadvantage of Commission Plans as an Incentive Pay