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Commission Definition and Explanation PDF Download

Learn Commission definition in hrm with explanation to study “What is Commission”. Study commission explanation with HRM terms to review HRM course for online MBA programs.

Commission Definition:

  • Compensation computed as a percentage of sales in units or dollars.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Commission Explanation:

Commissions are a type of variable-pay compensation for administrations rendered or items sold. Commissions are a typical method to spur and reward sales reps. Commissions can likewise be intended to energize explicit deals practices. For instance, commissions might be diminished when conceding huge limits. Commonly settled upon, or fixed by custom or law, charge accumulating to an operator, intermediary, or sales rep for encouraging, starting, and additionally executing a business exchange. A commission is a charge paid to a specialist as pay for executing an exchange. It is determined either as a level of the exchange esteem or as a level expense.

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