Under a merit pay system with a small merit pool, it is likely that _____ will be dissatisfied with their raises.
A) poor performers
B) average performers
C) high performers
D) new employees making the entry level rate
E) employees being paid at market rate

Question

Quizplus · Accepted Answer

High performers are likely to be dissatisfied with their raises under a merit pay system with a small merit pool because the limited funds available for distribution may not adequately reflect their superior performance or sufficiently differentiate their compensation from that of average or poor performers.

Under a Merit Pay System with a Small Merit Pool