You Have Designed Your Merit Pay Grid So That Employees

question 13

Multiple Choice

You have designed your merit pay grid so that employees with a "satisfactory" performance rating receive no merit increase if they are in the third and fourth quartiles, and a three or four percent merit increase if they are in the first or second quartile. What is the logic behind your decision?

• A) You believe that employees paid above the midpoint have already been rewarded for "satisfactory" work.
• B) You believe that this practice ensures procedural justice.
• C) You believe that it is important to maintain a compa-ratio of less than 1.
• D) You believe that pay raises should constitute a "just noticeable difference."

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Definitions:

Stimulus Contrast

The difference in intensity or quality between two stimuli, which can affect perception and behavioral responses.

Generalization Gradient

The generalization gradient is a measure of the degree to which learned behavior is exhibited in response to stimuli that are similar but not identical to the conditioned stimulus.

Conditioned Fear

A learned response where a neutral stimulus begins to elicit fear after being paired with an aversive event.