Many Organizations Do Not Offer Merit Raises to Employees Who

question 39

Multiple Choice

Many organizations do not offer merit raises to employees who are at the top of their pay ranges.This can cause morale problems for these employees.What is a potential solution to this issue?

• A) Cut pay for employees who are below the top of the pay range.
• B) Give merit bonuses to the affected employees.
• C) Re-evaluate the performance appraisal methods.
• D) Increase minimum pay for all employees.

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Definitions:

Net Income

The conclusive profit of a corporation post-deduction of all operational costs and taxation from the aggregate revenue.

Cash Dividends

Payments made by a corporation out of its earnings to its shareholders, usually in the form of cash.

Stock Dividends

A payment made to shareholders in the form of additional shares, rather than cash.

Stockholders' Equity

Funds owned by the shareholders of a company, calculated as the company's total assets minus its total liabilities, representing ownership interest in the company.