When objective performance measures are unavailable but the company still wants to base pay on performance, it uses a(n)
A) gainsharing plan.
B) profit-sharing plan.
C) individual incentive plan.
D) merit pay system.
E) stock option plan.

Question

Quizplus · Accepted Answer

Merit pay systems are used when objective performance measures are hard to define or unavailable. They rely on subjective assessments of an employee's performance, typically by their managers, to determine pay increases.

When Objective Performance Measures Are Unavailable but the Company Still