A firm that produces mixes for cakes, cookies, and other baked items has an incoming toll-free line for customer service calls. The manager of the customer service reps has decided to base about a third of their pay on the number of calls they handle per month and on the average amount of time on the phone with each customer.

What do you think are the benefits and limitations of this incentive pay system? What would you recommend to improve it?

AppendixLO1