Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products, such as drills, circular saws, and routers, for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan. Which of the following, if true, undermines the argument that Ryobi should discontinue all merit raises?

Question

Quizplus · Accepted Answer

C)If Ryobi managers have noticed productivity improvements among employees who receive merit raises, then the system is most likely effective and should not be discontinued. The decision to discontinue merit raises is supported by employees who prefer stock options and managers who lack performance appraisal training. Executive pay is less relevant to the decision.

Ryobi Is a Large, International Power Tool Manufacturer That Develops