A Company Has a Merit Pay Plan Based on the Relative

question 48

Multiple Choice

A company has a merit pay plan based on the relative performance of workers teams.Each worker in a team gets the same wage as other team members,but those in more productive teams get higher wages.Which of the following would NOT explain why this incentive might be better than other methods for motivating workers to work harder?

• A) If a worker works harder, it increases the productivity of other team members.
• B) If a team works harder, it does not affect the productivity of other teams.
• C) One worker can easily sabotage the productivity of other workers.
• D) One team can easily sabotage the productivity of other teams.

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