A Compensation Plan with a Larger Base-Salary Component and a Smaller

question 73

True/False

A compensation plan with a larger base-salary component and a smaller commission component is most effective for driving salespersons to acquire new businesses.

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Definitions:

Firm-specific Human Capital

Refers to the unique skills, knowledge, and abilities employees develop that are specifically valuable to their current employer.

Generic Human Capital

The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm.

Succession Management

A strategic process for identifying and developing new leaders who can replace old leaders when they leave, are promoted, or retire.

Human Capital Flows

The movement of skills, knowledge, and talents among regions, industries, or organizations, influencing productivity and growth.