Asked by Vikki Yager on Jul 01, 2024
Verified
Merit pay systems are always problem free.
Merit Pay Systems
Compensation strategies where employees' base pay increases are contingent upon their performance, often measured through performance appraisals.
- Acquire insight into how systems of compensation based on performance affect employee incentive and the effectiveness of the organization.
- Realize the significance of having clear and agreed-upon performance measures for effective compensation systems.
Verified Answer
JS
Jasveer Singh7 days ago
Final Answer :
False
Explanation :
Merit pay systems can face numerous issues such as inconsistency in performance evaluations, lack of transparency and fairness, demotivation of employees who don't receive merit pay, and potential for creating a cut-throat work environment.
Learning Objectives
- Acquire insight into how systems of compensation based on performance affect employee incentive and the effectiveness of the organization.
- Realize the significance of having clear and agreed-upon performance measures for effective compensation systems.