What is a disadvantage of a merit pay system?
A) It does not relate the rewards to economic conditions.
B) It cannot be used effectively with performance appraisals.
C) Comparative pay is not considered in its evaluation.
D) It does not provide rewards for performance in all the dimensions measured in the organization's performance management system.
E) It can quickly become expensive for the company.

Question

Quizplus · Accepted Answer

Merit pay systems can become expensive for companies as they require continuous financial resources to reward employees based on their performance, especially if many employees are performing well.

What Is a Disadvantage of a Merit Pay System