When There Is Relatively Little Differential Pay Associated with Using

question 41

Multiple Choice

When there is relatively little differential pay associated with using merit pay systems,one of the major problems that arise is:

• A)company has a problem tracking payroll costs.
• B)best performers perceive it as inequitable.
• C)middle performers complain.
• D)poor performers become worse.
• E)top management takes the opportunity to give itself raises.

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Definitions:

Close Supervision

refers to a management approach where managers or supervisors closely monitor and direct the activities of their subordinates, ensuring tasks are performed accurately and efficiently.

Complex Environment

refers to situations or systems that are intricate and difficult to understand or predict due to numerous interdependent elements and variables.

Departmentalization

The method of segmenting an organization into various departments, each responsible for distinct tasks or functions.

Functional Structure

A form of organization where the company is divided into departments each handling activities related to a particular function such as marketing, production, or human resources.