An Illustration of the Method of Compensation,as Contrasted with the Level

question 18

Multiple Choice

An illustration of the method of compensation,as contrasted with the level of pay,is:

• A)Sales reps are paid a salary plus 5 percent commission on sales.
• B)The top half of our sales reps average $1,500 a month in total earnings.
• C)The average pay of our sales reps is 10 percent above the average received by our unionized production workers.
• D)Our top sales rep earned $70,000 last year.
• E)None of these is an example of method of pay.

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Definitions:

Directive Leadership

A leadership style characterized by leaders who give instructions, set clear goals, and expect compliance from their subordinates.

Path-goal Leadership Theory

A theory that postulates a leader's effectiveness is based on their ability to clear followers' paths to their goals with the appropriate leadership style, thus enhancing their performance and satisfaction.

Servant Leadership

This leadership philosophy focuses on the leader's primary role as serving the needs of others, prioritizing the well-being and development of their team members above their own.

Organizational Objectives

Specific goals a company aims to achieve, which guide its operations and strategic planning.