Asked by Hayden Molokach on Jul 23, 2024
Verified
What is a consequence of lump-sum merit raises?
A) higher costs versus merit raises
B) lower budgets
C) increased performance standards
D) no merit-based increase in base pay
Lump-Sum Merit Raises
A one-time payment given to an employee as a reward for exceptional performance, instead of a regular salary increase.
Merit-Based Increase
Salary increases awarded to employees based on their performance, achievement, or accomplishments rather than tenure or seniority.
- Comprehend the determinants of success or failure in incentive strategies.
- Understand and acknowledge the merits of particular incentive strategies, such as piece rate and merit-based pay models.
Verified Answer
JA
Janessa AdamsJul 27, 2024
Final Answer :
D
Explanation :
Lump-sum merit raises are one-time payments that do not increase an employee's base salary, unlike traditional merit raises that increase the base pay, affecting future salary calculations and potentially increasing costs for the employer over time.
Learning Objectives
- Comprehend the determinants of success or failure in incentive strategies.
- Understand and acknowledge the merits of particular incentive strategies, such as piece rate and merit-based pay models.
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