ADMS 2600 Final: 2600 PPT final Note 2

• School: York University
• Department: Administrative Studies
• Course: ADMS 2600
• Professor: Anne Chow

Document Summary

Awards: often used to recognize productivity gains, special contributions or achievements. Noncash incentive award: most effective as motivators when the award is combined with a meaningful employee recognition program, sales incentives. Straight salary plan: compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume. Provides compensation during periods of poor sales. May not provide sufficient motivation for maximizing sales volume. Straight commission plan: compensation plan based upon a percentage of sales. Customer service is likely to be neglected. Earnings tend to fluctuate widely between good and poor periods of business. Salespeople are tempted to grant price concessions. Combined salary and commission plan: a compensation plan that includes a straight salary and a (cid:272)o(cid:373)(cid:373)issio(cid:374) (cid:272)o(cid:373)po(cid:374)e(cid:374)t (cid:894)(cid:862)le(cid:448)erage(cid:863)(cid:895) Combines the advantages of straight salary and straight commission forms of compensation. Can be used to develop the most favourable ratio of selling expense to sales.