Which characteristic of effective performance-based pay systems is being violated in the given sales commission example?

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Study for the University of Central Florida MAN3302 Talent Management Exam. Use flashcards and multiple-choice questions with explanations. Get exam-ready with interactive learning!

The characteristic being violated in the sales commission example relates to the goal set to earn payments not being attainable. For a performance-based pay system to be effective, the goals and targets established must be realistic and achievable for employees. If the goals are set too high or if the criteria for earning such payments are unattainable, it can lead to frustration, decreased motivation, and dissatisfaction among employees.

When individuals perceive that meeting these goals is impossible, it undermines the purpose of the incentive system, which is to enhance motivation and drive performance. A sustainable sales commission program should provide achievable targets that employees can strive for, thus enabling them to feel rewarded for their efforts when they succeed. This balance between challenge and attainability is crucial for the effectiveness of such pay systems.