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

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. If employees want stock options instead of raises, or managers lack the necessary training to conduct performance appraisals, then merit raises should be discontinued.

Ryobi Is a Large,international Power Tool Manufacturer That Develops Affordable,high-Quality