One of the Problems with Merit Raises Is the Risk

question 31

Multiple Choice

One of the problems with merit raises is the risk of providing a long-term future reward for a short-term past performance.What is one way to address this problem while maintaining the performance appraisal system?

• A) Replace merit raises with merit bonuses.
• B) Use stock options instead of merit raises.
• C) Use a team to assess performance.
• D) Outsource merit systems.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Filing Cabinet

A piece of office furniture used for storing documents, files, and other materials in an organized manner.

Long-term Memory

A type of storage in the brain capable of holding information for an extended period of time, from hours to a lifetime.

Revolving Door

A metaphor often used to describe a situation where individuals move back and forth between roles as industry professionals and regulators, leading to potential conflicts of interest.