Traditional merit pay plans have which of the following characteristics?

Question

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Traditional merit pay plans usually base the merit raise on individual performance, although the overall level of company profits may affect the total sum for merit raises. Option B is incorrect because corporate performance is not the only factor considered in traditional merit pay plans. Option C is incorrect because group performance is not the only factor considered, although it may be a consideration in some team-based merit pay plans. Option D is partially correct because the overall level of company profits may affect the total sum for merit raises, but it is not the sole determining factor. Option E is incorrect because traditional merit pay plans may consider both individual and corporate performance in determining merit raises.

Traditional Merit Pay Plans Have Which of the Following Characteristics