What is one problem with compensation systems? - ProProfs Discuss
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What is one problem with compensation systems?



Asked by Mattyoung, Last updated: Mar 23, 2024

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2 Answers

R. Barnes

R. Barnes

Always excited to learn and talk about new topics

R. Barnes
R. Barnes, Analyst, PhD, Clinton

Answered Feb 25, 2019

We all know that there are some managers that are given compensations and rewards for thinking of a new idea that may have never been tried before. This is good because people deserve to be rewarded for their creative ideas but then again, this might make the company acquire some losses.

There is no guarantee that the ideas that they will bring to the table will be very useful. What if the idea is not well received by the customers? There will be no money that will be received by the company. There are still other rules about compensation that may sometimes differ depending on the company.

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mattyoung741

mattyoung

mattyoung741
Mattyoung

Answered Aug 20, 2017

Sometimes a manager is rewarded for an objective other than maximizing profits.

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