Asked by Michaela Trujillo on May 23, 2024
Verified
It is not necessary to have a solid foundation of agreed upon and well-defined performance measures for a merit pay system to be fair and workable.
Performance Measures
Quantifiable indicators used to assess how well an individual, group, or entity meets certain standards or achieves objectives over time.
Merit Pay System
A compensation strategy that offers monetary rewards to employees based on their performance and achievements, aimed at motivating and retaining high performers.
- Understand the importance of establishing definite and consensual performance metrics for successful compensation frameworks.
Verified Answer
AE
Ashlie ElizabethMay 23, 2024
Final Answer :
False
Explanation :
A solid foundation of agreed upon and well-defined performance measures is essential for a merit pay system to ensure fairness and workability, as it provides clear criteria for evaluating employee performance and determining pay increases.
Learning Objectives
- Understand the importance of establishing definite and consensual performance metrics for successful compensation frameworks.