Consider a compensation contract using quotas: a firm pays its manager a low wage if output is
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a compensation contract using quotas: a firm pays its manager a low wage if output is below a target value and a high wage if output meets or exceeds the target level. For instance, paying 50,000 RMB for the whole year if output is below 1,000 units of output, but paying 100,000 RMB for the whole year if output meets or exceeds 1,000 units. Comment on the potential issues for using this quota-compensation contract and propose a numerical salary-plus-commission compensation contract to resolve these potential issues. Explain answer.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: