Commission
Payment to employees based on sales achieved (percentage of sales value).
Formula
Commission = Sales Value × Commission Rate
Real World
A Rightmove estate agent selling a £300,000 property at a 1.5% commission rate earns £4,500 from that single sale, directly linking their effort to their pay.
Exam Focus
Always link commission to Herzberg's motivators or Taylor's theory when asked to 'justify' a pay method — one-word answers score zero.
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