A Laboratory Study of Merit Pay Led to Which of the Following

question 37

Multiple Choice

A laboratory study of merit pay led to which of the following conclusions?

• A) Unless a merit pay is at least 10 to 11 percent of base pay,it will not produce the desired effect on employee behavior.
• B) Beyond a certain point,increases in merit-raise size are likely to improve performance.
• C) Smaller percentage raises given to employees at the higher ends of base-pay ranges are demotivating.
• D) Nonmerit components of a raise should not be separated from the merit component.

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Definitions:

Scale of Production

Refers to the size of the operation or the volume of output produced by a business or manufacturing plant.

Average Total Cost

Average Total Cost is the total cost of production divided by the total quantity produced, representing the per unit cost of production.

Returns to Scale

The change in output as a result of proportionately changing all inputs in the production process.

Student Enrollment

The process through which students register or enter into a course of study at educational institutions.