Beta Inc., a publishing firm, implements pay-for-performance raises. This is likely to lead to:
A)satisfaction among low performers.
B)high involuntary turnover.
C)dissatisfaction among high performers.
D)operational problems due to high performers leaving.
E)low performers being motivated to perform better.

Question

Quizplus · Accepted Answer

In an organization that bases raises on performance, low performers might report being dissatisfied with raises, but this may not reflect any operational problem. Indeed, the whole strategic purpose of many pay-for-performance plans is to create this type of dissatisfaction among low performers to motivate them to higher levels of performance.

Beta Inc, a Publishing Firm, Implements Pay-For-Performance Raises