You have designed your merit pay grid so that employees with a "satisfactory" performance rating receive no merit increase if they are in the third and fourth quartiles, and a three or four percent merit increase if they are in the first or second quartile. What is the logic behind your decision?
A) You believe that employees paid above the midpoint have already been rewarded for "satisfactory" work.
B) You believe that this practice ensures procedural justice.
C) You believe that it is important to maintain a compa-ratio of less than 1.
D) You believe that pay raises should constitute a "just noticeable difference."

Question

Quizplus · Accepted Answer

The logic behind the decision is that employees who are already paid above the midpoint have already been rewarded for "satisfactory" work, while those in the lower quartiles may require more motivation to improve their performance.

You Have Designed Your Merit Pay Grid So That Employees