Which of the Following Is Not a Reason for Firms

question 249

Multiple Choice

Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?

• A)Research has shown that most companies will find that a salary system will be more profitable than a commission system.
• B)It is often difficult to attribute output to particular workers.
• C)If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality.
• D)Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk.

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Definitions:

Leader Decision Style

The approach or method leaders use to make decisions, varying from autocratic to democratic or consultative.

Decision Tree

Decision Tree is a graphical representation that uses branching methods to illustrate every possible outcome of a decision, helping to analyze and make complex decisions systematically.

Autocratic Decision

A decision made by a leader who dictates policies and procedures, decides what goals are to be achieved, and directs and controls all activities without any meaningful participation by the subordinates.

Situational Model

A framework that suggests the effectiveness of a leadership approach is determined by the context or situation.