In What Ways Does a Company Compensation Plan That Includes

question 53

Multiple Choice

In what ways does a company compensation plan that includes only money as a reward for selling increase the likelihood that salespeople will act in unethical ways?

• A)If money is seen by the company and salesperson as the only reward,then the pressure to make sales at all costs increases.
• B)Money always corrupts an organization and its members,so unethical behavior is inevitable over time.
• C)The kinds of people who value other forms of rewards tend to be more principled than those who value money.
• D)A manager should use other nonfinancial forms of reward,depending on what the individual employee values.
• E)People always have the choice whether to act ethically or unethically,and the form of reward they receive should not affect their personal choices.

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Definitions:

Smooth Pursuit Eye Movements

The slow, controlled movements of the eyes designed to keep a moving object in focus, which can be used in psychological experiments and diagnostics.

Schizophrenia

A serious mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior, often involving hallucinations and delusions.

Diathesis

A predisposition or vulnerability for the development of an illness or disorder.

Meehl's Theory

Refers to Paul Meehl’s contributions to clinical versus statistical prediction of behavior and his work on the etiology of schizophrenia.