What is a disadvantage associated with an incentive compensation plan?
A)It does not develop employee loyalty.
B)It offers flexibility in assigning workers to jobs other than the one for which they were hired.
C)It rewards employees directly for providing customer service.
D)It cannot be used as a motivator.
E)It increases a retailer's fixed costs.

Question

Quizplus · Accepted Answer

Straight salary offers flexibility in job assignments and increases a retailer's fixed costs.The incentive plan does not reward employees for performing non-selling tasks.The incentive plan directly relates productivity to compensation.

What Is a Disadvantage Associated with an Incentive Compensation Plan