An advantage of merit pay is that:
A) it makes the reward more valuable by relating it to economic conditions.
B) it promotes group performance instead of promoting individual behavior.
C) it provides merit increases to employees only on the basis of performance.
D) it would never become costly for the employers.
E) it results in a bigger short-term reward for the best performers.

Question

Quizplus · Accepted Answer

Organizations that want employees to focus on efficiency and on group incentives may adopt a gainsharing program, which measures increases in productivity and effectiveness and distributes a portion of each gain to employees.

An Advantage of Merit Pay Is That