A good merit pay system should be based on

A) the company's net profits.
B) a solid foundation of agreed upon and well-defined performance measures.
C) the company's overall performance.
D) whether the company offers bonuses.
E) the employee's department's performance.

Question

Mandy D'Alterio · Accepted Answer

Final Answer : B, Explanation :  A good merit pay system should be based on clear and well-defined performance measures. These measures should be agreed upon by both the employer and employee and should be tied to the organization's goals and objectives. Using net profits or overall company performance may not accurately reflect an individual employee's contribution, and bonuses alone may not provide a clear understanding of performance expectations. Departmental performance may also not accurately reflect individual performance.

A good merit pay system should be based on

A) the company's net profits.
B) a solid foundation of agreed upon and well-defined performance measures.
C) the company's overall performance.
D) whether the company offers bonuses.
E) the employee's department's performance.

Definitions

Learning Objectives

Learning Objectives

Related questions

A good merit pay system should be based onA) the company's net profits.B) a solid foundation of agreed upon and well-defined performance measures.C) the company's overall performance.D) whether the company offers bonuses.E) the employee's department's performance.

Definitions

Learning Objectives

Learning Objectives

Related questions

A good merit pay system should be based on

A) the company's net profits.
B) a solid foundation of agreed upon and well-defined performance measures.
C) the company's overall performance.
D) whether the company offers bonuses.
E) the employee's department's performance.