Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?
A) Merit pay should be based on realistic and accurate measures of individual work performance.
B) Merit pay should create a belief among employees that they must perform at high levels to achieve high pay.
C) Merit pay should be higher for those employees whom the manager personally favors.
D) Merit pay should clearly differentiate between high and low performers in the amount of pay received.
E) Managers should avoid confusing "merit" aspects of a pay increase with "cost-of-living" adjustments.

Question

Quizplus · Accepted Answer

Merit pay should be based on objective and fair measures of performance, not on personal favoritism. Allowing personal favoritism to enter the merit pay process undermines employee trust in the system and can lead to resentment and disengagement.

Which of the Following Statements Does NOT Accurately Describe What