If most employees in an organization consider their pay raises inequitable,even though the organization uses performance-based compensation,the most likely cause is that
A) the majority of employees are poor performers.
B) the organization has an entitlement culture.
C) the work performed by the organization does not lend itself to objective performance appraisal.
D) some part of the appraisal process has failed.

Question

Quizplus · Accepted Answer

If the majority of employees feel their pay raises are inequitable despite a performance-based compensation system, it suggests that there may be a flaw in the appraisal process. This could be due to unclear performance criteria, subjective evaluations, inconsistent application of standards, or inadequate communication of the results. If the performance evaluation process is flawed or perceived as unfair, it can erode employees' confidence in the system and lead to dissatisfaction and demotivation. It is important to identify and address any such issues in order to maintain a fair and effective performance-based compensation system.

If Most Employees in an Organization Consider Their Pay Raises