For a Merit-Pay Plan to Be Effective, Which of the Following

question 47

Multiple Choice

For a merit-pay plan to be effective, which of the following is necessary?

• A) Employees must be involved in its development.
• B) The organization must have valid and reliable measures of what merit entails.
• C) The performance measurement system must not differentiate too greatly among employees.
• D) It must focus on pay for knowledge.
• E) It must result in relatively equal merit raises among employees.

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Definitions:

Recognized

Generally refers to the acceptance or acknowledgment of something as valid, legal, or official.

Substantial

Of considerable importance, size, or worth; significant enough to merit attention.

Assignee

is an individual or entity to whom rights or interests have been transferred by another party.

Timely Fashion

Completing tasks or obligations within a designated or reasonable time frame.