=+4 Solar Division’s salespersons are responsible for selling and providing customer service and support. Sales are easy to measure.

Although customer service is important to Solar in the long run, it has not yet implemented customer-service measures. Pat McCue wants to compensate her salesforce only on the basis of sales commissions paid for each unit of product sold. She cites two advantages to this plan:

(a) it creates strong incentives for the salesforce to work hard; and

(b) the company pays salespersons only when the company itself is earning revenues. Do you like her plan? Why or why not?