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Compare and contrast merit pay increases with the lump sum merit bonuses. Be sure to include reasons as to why an organization might prefer each method.
Incentives
Rewards or penalties that motivate individuals or entities to act in certain ways.
Hazardous Jobs
Occupations that pose significant risks of injury, illness, or death as a result of the work environment or tasks involved.
Moral Hazard
A situation where one party is more likely to take risks because the consequences of their actions are partly borne by others.
Straight Salary
A fixed amount of pay given to an employee, not dependent on the hours worked or performance.
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