MODULE 8 MOTIVATION AND REWARD SYSTEM...

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MODULE 8MOTIVATION AND REWARD SYSTEM MANAGEMENT MULTIPLE CHOICE 1. The most commonly used definitions of motivation include these three dimensions: a. intensity, degree, persistence. b. severity, direction, perseverance. c. persistence, intensity, direction. d. instruction, degree, tenacity. e. tenacity, persistence, direction. ANS: C REF: pg. 216 2. The amount of mental and physical effort put forth by the salesperson is referring to a. degree. b. persistence. c. tenacity. d. intensity. e. direction. ANS: D REF: pg. 216 3. The salesperson's choice to expend effort over a period of time, especially when faced with adverse conditions is referred to as a. intensity. b. persistence. c. tenacity. d. determination. e. degree. ANS: B REF: pg. 216 4. The motivation task is incomplete unless salespeople's efforts are a. aimed at improving overall salesforce sales. b. channeled in directions consistent with the overall strategic role of the salesforce within the firm. c. channeled into profitable activities. d. concentrated on sales quotas and ineffective activities are eliminated. e. motivated towards activities that improve the company's bottom line as well as the corporate image. ANS: B REF: pg. 216 5. A salesperson who is intrinsically motivated a. is motivated by the rewards that the job provides. b. is motivated by the need for love and belongingness. c. finds the job to be inherently rewarding. d. finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. e. works for the feeling of security offered by the job. ANS: C REF: pg. 216 6. A salesperson who is extrinsically motivated a. would work for the pure pleasure of working.

Transcript of MODULE 8 MOTIVATION AND REWARD SYSTEM...

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MODULE 8—MOTIVATION AND REWARD SYSTEM MANAGEMENT

MULTIPLE CHOICE

1. The most commonly used definitions of motivation include these three dimensions:

a. intensity, degree, persistence. b. severity, direction, perseverance. c. persistence, intensity, direction. d. instruction, degree, tenacity. e. tenacity, persistence, direction.

ANS: C REF: pg. 216

2. The amount of mental and physical effort put forth by the salesperson is referring to

a. degree. b. persistence. c. tenacity. d. intensity. e. direction.

ANS: D REF: pg. 216

3. The salesperson's choice to expend effort over a period of time, especially when faced with adverse

conditions is referred to as a. intensity. b. persistence. c. tenacity. d. determination. e. degree.

ANS: B REF: pg. 216

4. The motivation task is incomplete unless salespeople's efforts are

a. aimed at improving overall salesforce sales. b. channeled in directions consistent with the overall strategic role of the salesforce within the

firm. c. channeled into profitable activities. d. concentrated on sales quotas and ineffective activities are eliminated. e. motivated towards activities that improve the company's bottom line as well as the corporate

image.

ANS: B REF: pg. 216

5. A salesperson who is intrinsically motivated

a. is motivated by the rewards that the job provides. b. is motivated by the need for love and belongingness. c. finds the job to be inherently rewarding. d. finds that the job's fringe benefits, pay, and generous vacation policy provide motivation. e. works for the feeling of security offered by the job.

ANS: C REF: pg. 216

6. A salesperson who is extrinsically motivated

a. would work for the pure pleasure of working.

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b. doesn't need or desire formal recognition for outstanding achievements. c. is motivated by personal growth needs. d. finds the job to be inherently rewarding. e. is motivated by the rewards that the job provides.

ANS: E REF: pg. 216

7. Reward system management involves the selection and utilization of organizational rewards to

a. direct salespeople's behavior toward the attainment of organizational objectives. b. reward salespeople for outstanding sales achievements. c. direct effort toward the attainment of short-term goals (e.g., a sales contest during a seasonal

slump). d. compensate salespeople, with either financial or nonfinancial rewards, depending on those

desired most by the individual salesperson. e. compensate salespeople according to the profitability of their total sales to customers.

ANS: A REF: pg. 217

8. Compensation rewards might include all of the following except

a. recognition. b. bonus. c. promotion. d. task significance. e. opportunity for personal growth.

ANS: D REF: pg. 217

9. Noncompensation rewards include

a. opportunities for promotion. b. those rewards given for acceptable performance or effort. c. any current spendable income. d. insurance polices and/or retirement programs. e. a supportive sales management leadership style.

ANS: E REF: pg. 217

10. Which of the following is not one of the desired outcomes of an optimal reward system?

a. Encourage specific activities which are consistent with the firm's overall marketing and salesforce objectives and strategies.

b. Provide a mix of both compensation and noncompensation rewards comparable to other firms.

c. Attract and retain competent salespeople, thereby enhancing long-term customer relationships.

d. Be clear and flexible enough to allow the kind of adjustments that facilitate administration of the reward system.

e. Provide an acceptable ratio of costs and salesforce output in volume, profit, or other objectives.

ANS: B REF: pg. 217

11. ___________ rewards are those that are given in return for acceptable performance or effort.

a. Sales b. Intrinsic c. Noncompensation d. Compensatory

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e. Compensation

ANS: E REF: pg. 217

12. According to a survey of sales executives reported in the text, the most popular sales incentive is

a. plaques/rewards. b. merchandise/gifts. c. recognition dinners. d. cash. e. leisure trips/travel.

ANS: D REF: pg. 217

13. What change in the firm's salesforce reward system might be in response to customer's needs?

a. A pay freeze b. A change from straight commission to straight salary c. The introduction of a sales contest d. A change from straight salary to straight commission e. A pay raise

ANS: B REF: pg. 217-18

14. According to the text, which of the following is not one of the rewards typically offered to salespeople?

a. social interaction opportunities b. job security c. sense of accomplishment d. pay e. promotion

ANS: A REF: pg. 218

15. Current spendable income includes

a. salaries and commissions, but not bonuses. b. salaries only. c. salaries, commissions, and bonuses. d. any cash award, but not bonuses such as merchandise or free trips. e. weekly or monthly income, but not rewards made only annually.

ANS: C REF: pg. 218

16. The reward system practiced by the majority of consumer and industrial firms is

a. straight salary. b. salary plus incentives. c. straight commission plus bonuses. d. straight salary plus expenses. e. straight commission.

ANS: B REF: pg. 218

17. Industries that have traditionally used a straight-commission-based compensation pay plan include all of

the following except a. real estate. b. securities. c. automobiles. d. wholesalers. e. computers.

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ANS: E REF: pg. 219

18. If the nonselling administrative duties of the salesperson are of major importance, this compensation

plan is recommended: a. straight salary. b. salary plus bonuses. c. straight commission. d. salary plus commission. e. straight commission plus bonuses.

ANS: A REF: pg. 219

19. Advantages of straight-salary compensation plans include all of the following except

a. salaries can provide control over salespeople's activities, especially nonselling activities. b. the working capital requirements are lessened with the straight-salary compensation plan. c. reassigning salespeople and changing sales territories is less of a problem than with other

financial compensation plans. d. they are the simplest plans to administer, with adjustments usually occurring only once a

year. e. planned earnings for the salesforce are easy to project, which facilitates the salesforce

budgeting process.

ANS: B REF: pg. 219

20. The most serious disadvantage of a straight-salary compensation plan is

a. that it builds little in the way of salesforce loyalty or commitment to the company. b. that differences in salary levels among salespeople are often a function of seniority on the

job instead of true merit. c. that they offer little financial incentive to perform past a merely acceptable level. d. the financial burden the firm suffers if the market declines or stagnates. e. that high-pressure, non-customer-oriented sales techniques are often used to boost total

sales.

ANS: C REF: pg. 220

21. A large direct sales company such as Avon would most likely compensate their salespeople in this

manner a. straight salary. b. salary plus bonuses. c. straight commission. d. salary plus commission. e. straight commission plus bonuses.

ANS: C REF: pg. 220

22. Which of the following is not a factor to be considered when developing a commission-only plan?

a. Commission base b. Commission rate c. Commission margin d. Commission splits e. Commission payout event

ANS: C REF: pg. 220

23. This form of commission rate may actually result in overselling and higher selling costs to the company:

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a. regressive. b. incremental. c. a combination of constant and regressive rates. d. constant. e. progressive.

ANS: E REF: pg. 221

24. When it is difficult for the salesperson to secure the first order from the customer, but reorders are

virtually automatic, this form of commission rate would be appropriate: a. regressive. b. incremental. c. a combination of constant and progressive rates. d. constant. e. progressive.

ANS: A REF: pg. 221

25. An example of a selling situation requiring a commission split would be

a. a field salesperson sells a computer to a customer and some time after this it requires a service call from a company service technician.

b. a salesperson needs help from a salaried technical expert in order to provide a potential customer with certain information.

c. a large company purchases products from a company and ships them to its affiliates in several cities, with the selling firm's salespeople in these cities required to provide follow-up and service.

d. a salesperson provides a list of referrals that are not in his/her territory to the salesperson covering that territory.

e. a sales manager is in the process of training a new recruit and accompanies him/her on sales calls.

ANS: C REF: pg. 221

26. Which of the following is not an advantage of the commission compensation plan?

a. Income is linked to results. b. There is a strong financial incentive to improve results. c. Costs are reduced during slow sales periods. d. Less operating capital is required. e. Customer loyalty is enhanced.

ANS: E REF: pg. 221

27. Which of the following is an advantage of a straight-commission compensation plan?

a. Operating costs are minimized during slack selling periods. b. They are highly flexible, allowing frequent changes in compensation practices to achieve

short-term objectives. c. They are attractive to college graduates desiring an opportunity to earn while they train. d. The salesforce's loyalty to the company is enhanced. e. Salespeople often adopt high-pressure, non-customer-oriented sales techniques which

increase total sales.

ANS: A REF: pg. 221

28. Perhaps the most serious shortcoming of straight-commission plans is that

a. salespeople may earn more than their managers.

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b. they contribute little to company loyalty, resulting in potential salesforce control problems. c. the firm suffers financially if the market declines or stagnates. d. high-pressure, non-customer-oriented sales techniques are often used to boost total sales. e. they are difficult to administer.

ANS: B REF: pg. 221

29. When determining the financial compensation mix, the sales manager must

a. decide what the commission payout event will be. b. determine what percentage in commission is to be paid to salespeople. c. determine the relative amounts to be paid in salary, commission, and bonus. d. decide on what type of benefits package to offer. e. review the compensation plans offered by other firms in the industry.

ANS: C REF: pg. 222

30. Which of the following conditions would indicate to the sales manager that the proportion of the

salesperson's total pay that is salary should be relatively low? a. The reputation of the salesperson's company is well known. b. The importance of the salesperson's personal skills in making sales is considerable. c. The incidence of technical or team selling is high. d. The importance of factors beyond the control of the salesperson which influence sales is

considerable. e. The competitive advantage of the product in terms of price, quality, etc., is high.

ANS: B REF: pg. 223

31. Which of the following conditions would indicate to the sales manager that the proportion of the

salesperson's total pay that is salary should be relatively high? a. The reputation of the salesperson's company is little known. b. The importance of the salesperson's personal skills in making sales is slight. c. The company’s reliance on advertising and other sales promotion activities is little. d. The importance of factors beyond the control of the salesperson which influence sales is

slight. e. The importance of providing customer service is slight.

ANS: B REF: pg. 223

32. Which of the following is not an advantage of combination plans?

a. They are flexible. b. They are fairly simple to administer. c. Sales behavior can be rewarded frequently. d. Specific sales behaviors can be reinforced or stimulated quickly. e. They are attractive to high-potential, but unproven, candidates for sales jobs.

ANS: B REF: pg. 223

33. Flexibility has been cited as both an advantage and a disadvantage of this compensation pay plan:

a. straight salary. b. combination pay plans. c. straight commission. d. straight commission with bonuses. e. straight salary with bonuses.

ANS: B REF: pg. 223

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34. A common criticism of combination pay plans is that they a. cost the firm more in total pay to salespeople. b. do not provide equitable treatment of high-performing salespeople. c. tend to produce too many salesforce objectives which are of the crisis-resolution variety. d. are unattractive to high-potential, but unproven college graduates. e. may often lead to salespeople earning more than their managers, which leads to resentment

and other managerial problems.

ANS: C REF: pg. 223

35. Which of the following is not a form of nonfinancial compensation?

a. Career advancement through promotion b. Job redesign c. Job security d. Recognition of achievement e. A sense of accomplishment on the job

ANS: B REF: pg. 224

36. This form of nonfinancial reward is generally considered to be more desirable to younger salespeople

than to older salespeople: a. opportunity for personal growth. b. opportunity for promotion. c. job security. d. sense of accomplishment. e. recognition for achievement.

ANS: B REF: pg. 224

37. When a sales manager assures salespeople that they fulfill a critical role in revenue production and other

key activities within the company, he/she is offering this non-financial reward: a. opportunity for personal growth. b. recognition for achievement. c. sense of accomplishment. d. job security. e. job redesign.

ANS: C REF: pg. 224

38. A firm offering a college tuition reimbursement program has made a commitment to providing this

nonfinancial reward: a. opportunity for personal growth. b. recognition for achievement. c. sense of accomplishment. d. opportunity for promotion. e. job redesign.

ANS: A REF: pg. 224

39. The Million Dollar Roundtable designation in the insurance industry is an example of this type of

nonfinancial reward: a. opportunity for promotion. b. sense of accomplishment. c. personal growth. d. recognition for achievement.

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e. job security.

ANS: D REF: pg. 225

40. All of the following are steps suggested for facilitating a sense of accomplishment in the salesforce

except a. ensure that salespeople know the critical role they play in sales revenue production. b. personalize the causes and effects of salesperson performance. c. consider the practice of management by objectives. d. reinforce feeling of worthwhile accomplishment in communication with the salesforce. e. provide salespeople with trips and other rewards.

ANS: E REF: pg. 225

41. Lavish formal recognition programs can provide all of the following benefits to a salesforce except

a. providing for public recognition for accomplishments in the presence of peers and superiors in the organization.

b. making the winners feel special. c. enthusiasm inspired by the program carrying over into any related business or training

sessions. d. costing little and reinforcing desirable behavior immediately after it occurs. e. providing the recipient with a symbolic award of lasting psychological value.

ANS: D REF: pg. 225

42. Formal recognition programs have a better chance of success if sales managers do all of the following

except: a. publicize the program before it is implemented. b. make it easy enough to allow for a majority of the salesforce to win. c. ensure that the celebration for winners is well-conceived and executed. d. arrange for individual salespeople or sales teams to acknowledge the support of others who

helped them win the award. e. remember that the program should make sense from a return-on-investment perspective.

ANS: B REF: pg. 225

43. The least valued nonfinancial reward by salespeople, other than those nearing retirement, is

a. opportunity for promotion. b. sense of accomplishment. c. personal growth. d. recognition for achievement. e. job security.

ANS: E REF: pg. 225

44. According to the text, controls typically used by companies to ensure judicious spending by the

salesforce include all of the following except a. the use of allowances for certain expenditures. b. the requirement of documentation for expenses to be reimbursed. c. the requirement that expenses be charged and the bills sent directly to the company for

payment by the accounting department. d. a definition of which expenses are reimbursable. e. the establishment of expense budgets.

ANS: C REF: pg. 226

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45. All of the following are typical reimbursable expense items except a. automobile. b. mileage allowance. c. home. d. telephone. e. entertainment.

ANS: C REF: pg 226

46. Expense account padding

a. is an expected activity and is generally ignored unless it is very blatant. b. occurs very rarely as most salespeople are quite honest. c. is considered a serious offense, which, if detected, often leads to termination of

employment. d. is so difficult to uncover that most companies simply do not try. e. is viewed as a fringe benefit by most salespeople.

ANS: C REF: pg. 222

47. Which of the following statements regarding sales contests is true?

a. A sales contest is a temporary program that is used to accomplish a specified long-term objective.

b. The optimum duration for a sales contest has been determined to include this range--longer than three months but less than six months.

c. The most effective sales contest prize is a cash award. d. Sales contests will continue to be an important tool for achieving expedient results. e. Researchers have not yet been able to find any positive relationship between sales contests

and sales and profitability.

ANS: D REF: pg. 228

48. Which of the following is not a guideline for optimizing the use of sales contests?

a. Recognize that contests will concentrate efforts in specific areas, often at the temporary neglect of other areas so plan accordingly.

b. Consider the positive effects of including nonselling personnel in sales contests. c. Use variety as a basic element of sales contests by varying timing, duration, themes, and

rewards. d. Ensure that sales contest objectives are clear, realistically attainable, and quantifiable to

allow performance assessment. e. Salespeople should compete in teams with each member of the team making a contribution

to the group's total goal.

ANS: E REF: pg. 229

49. Which of the following is not mentioned in the text as a challenge to sales managers attempting to adjust

their compensation plans to recognize team performance? a. Existing reward systems for individual salespeople are not easy to adapt to team selling

situations. b. Salespeople who are accustomed to earning commissions based on their individual efforts

may not respond enthusiastically to team-based compensation. c. There is concern that rewards for high performers may be diminished by lower-performing

team members. d. It is difficult to determine an individual salesperson's contribution to overall team

performance. e. Overall compensation and rewards increase with the use of team selling.

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ANS: E REF: pg. 230

50. Which one of the following statements regarding global compensation is false?

a. The compensation of native salespeople is difficult. b. In many countries, political or cultural factors may have a strong influence on salesforce pay

practices. c. Overseas assignments can enhance career opportunities. d. Companies are increasing incentives for foreign-based employment. e. Sales managers often rely on human resource professionals to assist in global compensation

planning.

ANS: D REF: pg. 231

51. Which of the following is not true regarding the design of a global salesforce compensation system?

a. Design the plan centrally and dictate to local countries. b. Involve reps from key countries. c. Allow local countries flexibility in implementation. d. Use consistent communication and training themes worldwide. e. Allow local managers to decide the mix between base an incentive pay.

ANS: A REF: pg. 232

52. Which of the following statements regarding changes in the reward system is false?

a. They should be made during recessionary periods. b. They will likely produce widespread concern among the salesforce that their earnings will

decline. c. They are precipitated by poor financial performance by the company. d. They can be traumatic for salespeople and management alike. e. Reasons for the change should be openly discussed.

ANS: A REF: pg. 232

53. To implement a new or modified reward system, sales managers should do all of the following except

a. clearly communicate details of the plan to the salesforce prior to its implementation. b. encourage salesforce feedback. c. promptly answer questions. d. detail any expected changes in job activities. e. issue a press release detailing the company’s changes.

ANS: E REF: pg 233

54. Which of the following is not a guideline recommended in the management of motivation?

a. Recruit and select salespeople whose personal motives match the requirements and rewards of the job.

b. Provide adequate job information and assure proper skill development for the salesforce. c. Take a reactive approach to seeking out motivational problems and sources of frustration in

the salesforce. d. Concentrate on building the self-esteem of salespeople. e. Use job design and redesign as motivational tools.

ANS: C REF: pg. 233

55. The importance of matching the abilities and needs of sales recruits to the ____ cannot be overstated.

a. abilities and needs of the customer b. requirements and desires of the company

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c. requirements and rewards of the job d. skills and requirements of the job e. specifications and abilities of the company

ANS: C REF: pg. 233

TRUE/FALSE

1. A salesforce reward system is one of the most important determinants of both short-and long-term sales

performance.

ANS: T REF: pg. 215

2. Salespersons' choices of which activities warrant action are less important than how hard they work or

how well they persist in their efforts.

ANS: F REF: pg. 216

3. Studies indicate that higher levels of effort, or intensity, are associated with higher levels of salesperson

performance.

ANS: F REF: pg. 216

4. A salesperson's overall motivation is either a function of extrinsic or intrinsic motivation, but cannot be

both.

ANS: F REF: pg. 216

5. Organizational rewards are classified as compensation rewards and reimbursement rewards.

ANS: F REF: pg. 217

6. Noncompensation rewards include factors related to the work situation and well-being of each

salesperson.

ANS: T REF: pg. 217

7. Job design factors such as skill variety and feedback are forms of nonfinancial compensation rewards.

ANS: F REF: pg. 217

8. The optimal reward system would balance the needs of the organization, its salespeople, and its

customers.

ANS: T REF: pg. 217

9. Salesperson jobs that are interesting and challenging can increase salesperson motivation.

ANS: T REF: pg. 217

10. Most salespeople prefer some stability in their reward system and care little about incentive rewards.

ANS: F REF: pg. 217

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11. The most productive salespeople have the best opportunities to leave the firm for more attractive work

situations.

ANS: T REF: pg. 217

12. Research indicates that salespeople are more customer oriented when customer satisfaction incentives

are used.

ANS: T REF: pg. 218

13. A comprehensive study of salesforce financial compensation practices found that the salary-only plan

and the salary-plus-bonus plan were equally popular.

ANS: F REF: pg. 218

14. The chosen compensation system often depends on the organization’s strategy, competitive offerings,

and products or services sold.

ANS: T REF: pg. 218

15. A straight-commission compensation plan is suggested for salespeople such as missionaries and

detailers.

ANS: F REF: pg. 219

16. A straight-commission compensation plan is appropriate for sales trainees who are involved in learning

about the job rather than producing on the job.

ANS: F REF: pg. 219

17. With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented

sales techniques will be used.

ANS: T REF: pg. 219

18. There is general agreement that salesforce loyalty to the company may be greater with

straight-commission plans.

ANS: F REF: pg. 219

19. Industries that have traditionally paid salespeople by straight commission include insurance and

securities.

ANS: T REF: pg. 219

20. With a straight-salary compensation plan, the least productive members of the salesforce tend to be the

most rewarded salespeople.

ANS: T REF: pg. 220

21. The most popular commission base appears to be sales volume.

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ANS: T REF: pg. 220

22. A constant commission rate changes incrementally as salespeople reach prespecified target levels of

sales.

ANS: F REF: pg. 220-21

23. A progressive commission rate declines at some predetermined point of sales.

ANS: F REF: pg. 221

24. Most companies that operate on a sales-volume commission basis declare the commission earned at the

time the order is shipped to the customer.

ANS: F REF: pg. 221

25. Commission plans may attract competent results-oriented salespeople and eliminate incompetent reps.

ANS: T REF: pg. 221

26. One disadvantage of commission plans is that salespeople may neglect cultivating potentially profitable

long-run customers in favor of easy sales.

ANS: T REF: pg. 222

27. Performance bonuses may be offered in the form of cash or income equivalents such as merchandise or

free travel.

ANS: T REF: pg. 216

28. Bonuses are typically used to direct effort toward relatively short-term objectives.

ANS: T REF: pg. 216

29. Combination pay plans usually feature commission as the major source of salesperson income.

ANS: F REF: pg. 216

30. A good combination compensation plan offers a balance of incentive, control, and enough flexibility to

reward important salesforce activities.

ANS: T REF: pg. 222

31. If the company relies heavily on advertising and other sales promotion activities, the salespeople's total

pay should have an emphasis on commissions.

ANS: F REF: pg. 222

32. If the provision of customer service is crucial, then a combination plan with emphasis on the salary

dimension is recommended.

ANS: T REF: pg. 222

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33. The primary advantage of combination pay plans is the flexibility they offer.

ANS: T REF: pg. 223

34. As compared to a straight-salary or combination plan, the straight-commission compensation plan is

more complex and difficult to administer.

ANS: F REF: pg. 223

35. One disadvantage of a combination compensation plan is that mediocre salespeople are eliminated less

rapidly than they would be under a straight commission plan.

ANS: T REF: pg 223

36. The sales manager can easily give a salesperson a sense of accomplishment by giving him/her pats on

the back and occasional praise.

ANS: F REF: pg. 224

37. Informal recognition awards are easy to administer and cost practically nothing.

ANS: T REF: pg. 225

38. The formal recognition program is new to most sales organizations.

ANS: F REF: pg. 225

39. Most recognition programs are simply popularity contests and leave salespeople feeling let down and

deceived.

ANS: F REF: pg. 225

40. Many companies believe that money spent on recognition programs are a good investment.

ANS: T REF: pg. 225

41. Formal recognition programs have a better chance of succeeding if sales managers publicize the

program before it is implemented.

ANS: T REF: pg. 225

42. Job security is equally valued by those at both the beginning and end of their careers.

ANS: F REF: pg. 225

43. The majority of sales organizations offer full reimbursement to their salespeople for legitimate sales

expenses such as travel, lodging, and meals.

ANS: T REF: pg. 226

44. Expense budgets may be used to maintain expenses as a specified percentage of overall sales volume or

profit.

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ANS: T REF: pg. 227

45. Many firms use a per-diem allowance for meals and lodging to control salesforce expenditures.

ANS: T REF: pg. 227

46. Expense-report software makes it easier to report and track sales expenses.

ANS: T REF: pg. 227

47. Expense account padding is a common and acceptable practice.

ANS: F REF: pg. 228

48. Common expense account padding tactics include seeking reimbursement for personal expenses and

inventing purchases.

ANS: T REF: pg 229

49. Many sales contests are held to correct bad planning and poor sales performance.

ANS: T REF: pg. 229

50. It is generally believed that sales contests have some positive effects on salesforce performance.

ANS: T REF: pg. 229

51. Sales managers should minimize potential motivation and morale problems in sales contests by allowing

multiple winners.

ANS: T REF: pg. 229

52. To increase motivation during sales contests, base the amount of the reward on relative rank achieved so

that those ranking higher receive larger amounts.

ANS: T REF: pg. 229

53. According to the text, one survey reported that the most difficult challenge involved in running a contest

was awarding the prizes.

ANS: F REF: pg. 229

54. Research shows that rewarding salespeople fairly leads to increased motivation and improved job

performance.

ANS: T REF: pg. 229

55. It is permissible by law to pay a female salesperson less than a male salesperson if the sales manager has

reason to believe that the woman's family responsibilities will cause her to leave the salesforce.

ANS: F REF: pg. 230

56. In sales, men and women are always paid equally.

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ANS: F REF: pg. 230

57. With team pay, all team members should be measured and paid alike.

ANS: F REF: pg. 231

58. In many countries, political or cultural factors may have a strong influence on salesforce pay practices.

ANS: T REF: pg. 231

59. What motivates salespeople does not vary from country to country.

ANS: F REF: pg. 231

60. With regards to designing a global compensation system, don’t allow local managers to decide the mix

between base and incentive pay.

ANS: F REF: pg. 232

61. Any major change in financial compensation practices is likely to produce widespread concern among

the salesforce that their earnings will decline.

ANS: T REF: pg. 233

62. The best time to institute major changes in salesforce reward systems is during a recessionary period.

ANS: F REF: pg. 233

63. A guideline for managing salesforce motivation would be to attempt to incorporate individual needs of

salespeople into motivational programs.

ANS: T REF: pg. 233

64. Investing more time in recruiting and selection will pay off later in terms of fewer motivational and other

managerial problems.

ANS: T REF: pg. 233

65. Online incentive programs provide an opportunity to meet the diverse needs of resellers when

attempting to motivate them.

ANS: T REF: pg. 234

66. Boredom is a typical problem with sales jobs.

ANS: F REF: pg. 234

67. The motivational task is generally more difficult for sales managers than for other managers.

ANS: F REF: pg. 234