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:

Basis

The underlying support or foundation for an idea, argument, or process.

Additional Parties

Refers to extra individuals or groups involved in a negotiation or decision-making process beyond the primary stakeholders.

Invited

Requested to attend or participate in a particular event or activity.

Multiparty Negotiation

A negotiation process that involves more than two parties with varying interests and objectives.