Which of the Following Statements About Merit Pay Plans Is

question 48

Multiple Choice

Which of the following statements about merit pay plans is true?

• A) Under merit pay plans, performance is usually measured objectively.
• B) Traditional merit pay plans entail considerable risk for employees.
• C) With merit pay plans, base pay is set at the market rate.
• D) Merit pay raises will be removed if performance declines.
• E) The size of merit pay adjustments is typically greater than that awarded under the incentive and earnings-at-risk plans.

Assess the role of fairness and discrimination in performance-based pay systems.

Evaluate the legal and ethical considerations in designing performance-based pay plans.

Recognize the strategic objectives achieved through performance-based compensation.

Understand the role of performance measures in linking compensation to desired outcomes.

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Definitions:

DARN Mnemonic

A tool used to remember the four types of client statements indicating readiness for change: Desire, Ability, Reasons, and Need.

Paraphrasing

The act of rewording or restating someone else's ideas or statements in your own words to ensure better understanding.

Emotional Content

The emotional significance or impact of a communication, event, or artistic expression.

Feelings-Based Reflection

An introspective process where an individual examines their emotional responses to understand their underlying values and thoughts.