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ACCA Applied Knowledge · Business and Technology · Motivating individuals and teams

A firm replaces its fixed-salary scheme for sales staff with a pure commission scheme. Which of the following is the most likely negative consequence, in line with motivation theory and reward design?

Staff may chase short-term sales at the expense of customer service and teamwork, while losing income security. Pure commission strengthens the effort-reward link but removes a basic security need and can distort behaviour, so the stated negative consequence is the most likely outcome.

  1. AStaff may focus on short-term sales at the expense of customer service and teamwork, and security needs go unmetCorrect
  2. BStaff will no longer be able to see any link between effort and reward
  3. CStaff will be motivated mainly by hygiene factors being removed, raising long-term satisfaction
  4. DStaff will gain greater autonomy and therefore reward becomes irrelevant to them

Explanation

Pure commission links reward strongly to sales but removes income security (a lower-level need) and can encourage short-term selling, neglect of service and weak teamwork. Option B is wrong because the link between effort and reward is clearer, not absent. Removing a fixed salary reduces security rather than raising satisfaction.

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