Peter was recently hired as a salesman for a national consulting firm. His job involves spending a significant portion of his time out of the office visiting prospects and attending conferences. Which of the following is a strategy the consulting firm may employ to discourage Peter from shirking his responsibilities?
A)Tell Peter that the shareholders want to earn a large profit this year.
B)Pay Peter commissions on what he sells after the work has been completed.
C)Allow Peter to set his own schedule and work from home frequently.
D)Pay Peter a lower wage than he would earn in a similar job at another firm.

Question

Quizplus · Accepted Answer

By paying Peter commissions based on completed work, the consulting firm is incentivizing him to work hard and generate sales. This strategy ties Peter's compensation to his performance and makes it less likely that he will shirk his responsibilities. Options A, C, and D do not provide the same level of motivation for Peter to perform well.

Peter Was Recently Hired as a Salesman for a National