When there is relatively little differential pay associated with using merit pay systems,one of the major problems that arise is:
A)company has a problem tracking payroll costs.
B)best performers perceive it as inequitable.
C)middle performers complain.
D)poor performers become worse.
E)top management takes the opportunity to give itself raises.

Question

Quizplus · Accepted Answer

When there is relatively little differential pay associated with using merit pay systems, the best performers may perceive it as inequitable since they are not receiving a significant reward for their efforts compared to average or poor performers. This can lead to demotivation and a decrease in productivity.

When There Is Relatively Little Differential Pay Associated with Using