The incentive plan is based on which assumption?
A) In comparison to other Macmoo employees, Macmoo salespeople are less interested in the overall success of the company.
B) Macmoo salespeople believe that they can have a significant effect on the overall performance of the company.
C) In the past, Macmoo salespeople have not consistently acted in the best interests of the company.
D) The only effective way to motivate employees is through financial incentives.
E) Macmoo employees are similar to other salespeople in the industry.

Question

Quizplus · Accepted Answer

B)The incentive plan rewards salespeople when the company does well because Macmoo wants employees to act in the best interest of the overall company. But incentives only make sense if there's some connection between the actions of the person with the incentive and the chance that they'll get the reward. This incentive will only work if the salespeople believe that their actions make a difference, and so Choice B must be assumed. If the salespeople don't believe that what they do makes a difference to Macmoo's overall success, then why would they alter their behavior? Choices A and E bring in two irrelevant groups, other Macmoo employees (Choice A)and salespeople in other companies (Choice E). This is about Macmoo salespeople, not those groups. Choice C would strengthen the case for the plan, but doesn't need to be true in order for the plan to work. Choice D goes too far. The plan assumes that incentives work, but not that they're the only thing that works.

The Incentive Plan Is Based on Which Assumption