In ___, pay increases are awarded to an employee in proportion to his/her performance contributions.

A) merit pay systems
B) seniority pay systems
C) employee stock ownership plans
D) profit-sharing plans
E) early retirement incentive programs

Merit Pay Systems

Compensation methods where employees' performance is directly tied to their salary increments, bonuses, or promotions, aiming to reward high performance.

Performance Contributions

The measurable impacts or outcomes that an individual's actions have on achieving organizational objectives.

Pay Increases

Adjustments or raises in an employee's salary or wage rate.