Which of the Following Is a Disadvantage of a Merit

question 86

Multiple Choice

Which of the following is a disadvantage of a merit pay system?

• A) It does not relate the rewards to economic conditions.
• B) It cannot be used effectively in performance appraisals.
• C) Comparative pay is not considered in its evaluation.
• D) It is not consistent with performance management's dimensions.
• E) It can quickly become expensive for the company.

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Definitions:

Drive-Reduction Theory

the idea that a physiological need creates an aroused state (a drive) that motivates an organismto satisfy the need

Physiological State

The condition of normal function of a living organism’s body, including its physical and chemical processes.

Motivational Arousal

The process of being internally stimulated to perform an action or behavior due to personal drive or desire.

Physiological Needs

Basic life needs required for human survival, such as air, water, food, shelter, and sleep, according to Maslow's hierarchy of needs.