It Is a Good Idea to Pretest a Compensation Plan

question 9

True/False

It is a good idea to pretest a compensation plan and introduce it to the sales force before the plan is installed on a permanent basis.

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Definitions:

Rationalization

The process of replacing traditional and emotional thought processes with reason and practicality, often associated with the development of bureaucratic systems.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century, which dramatically changed society with technological advancements and urbanization.

Economic Logic

The rationale or principles guiding economic decision-making, focusing on the allocation of resources for optimal outcomes.

Bureaucracies

Complex systems of administration and governance characterized by fixed rules, a hierarchy of authority, and a focus on procedural efficiency.