If a Salesperson Is Paid by the Volume of Sales

question 55

Multiple Choice

If a salesperson is paid by the volume of sales he or she makes, then the

• A) moral hazard problem is diminished.
• B) moral hazard problem is enhanced.
• C) adverse selection problem is enhanced.
• D) there is no effect on the moral hazard problem.

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Definitions:

Job Design

The process of organizing tasks, duties, and responsibilities into a productive work unit to accomplish organizational objectives efficiently.

Job Characteristics Theory

A theory that suggests certain job characteristics can improve employee job satisfaction, motivation, and productivity by enhancing psychological states related to the work.

Core Job Dimension

Fundamental aspects of a job that affect employee motivation and job satisfaction, such as skill variety, task identity, and feedback.

Critical Psychological State

Refers to an individual's mental condition that can significantly influence their motivation, efficiency, and satisfaction in the workplace.