Which of the following is cited as a limitation of merit pay plans?

Which of the following is cited as a limitation of merit pay plans?




A) Being based on an annual performance appraisal, the merit pay is as valid (or invalid) as the performance ratings on which it is based.
B) The pay raise pool seldom fluctuates.
C) Unions encourage merit pay plans.
D) Employees tend to like merit pay plans.
E) There is little link between pay and performance.



Answer: A


OBE

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