What Is a Disadvantage of a Merit Pay System

question 60

Multiple Choice

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.

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Definitions:

Major Depressive Disorder

A more severe form of depression characterized by persistent and intense feelings of sadness and hopelessness along with other symptoms.

Preoccupied

Being absorbed or engrossed in thoughts or concerns, often to the extent of being unaware of one's surroundings.

Hopeless

A state of despair when an individual perceives little to no possibility of positive outcomes in a situation.

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a severely traumatic event, characterized by flashbacks, nightmares, and severe anxiety.