Dixie Manufacturing Uses a Strict Merit Pay System

question 28

Multiple Choice

Dixie Manufacturing uses a strict merit pay system. Angel is one of 12 assembly line workers in your department, and she has been a good performer for the last nine years. But this year, her performance has been significantly below average. Angel has not mentioned problems at home, but you noticed in the crime section of the local paper that her teenage son was convicted for driving under the influence at New Year's, and in the legal postings you learned she divorced her husband for desertion at Easter. The local paper also carried a story about children with learning disabilities, and you noticed that Angel's youngest daughter was featured. What should Angel's merit raise be this year? Angel's raise should be

• A) an average of what she earned in previous years. She is obviously a good employee who is going through a hard time.
• B) the average raise that everyone else in the department is getting. Otherwise, Angel will get discouraged, and you may lose a good employee.
• C) a high raise. Angel has higher need for income since her husband deserted her and her family.
• D) zero. Poor performance cannot justify a raise.
• E) Under a strict merit raise system, none of the above is a correct response.

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Definitions:

Apprentice Welder

An individual in the early stage of their career learning the craft of welding under the supervision of experienced welders.

On-the-Job Training

Training that occurs within the workplace while the employee is performing their actual job duties, often under the supervision of a more experienced colleague.

Human Capital

The combined abilities, expertise, and non-physical assets of people that contribute to creating financial worth.

Physical Capital

Assets that are tangible, such as buildings, machinery, and equipment, used to produce goods and services.