What is the first issue to decide when designing a merit pay system?
A) the objectives of the system
B) the amount of money to be distributed
C) how appraisals will be linked to pay
D) the methods to appraise employee performance

Question

Quizplus · Accepted Answer

The first issue to decide when designing a merit pay system is to establish the objectives of the system. This will help determine the criteria for evaluating and rewarding employees based on their performance. Once the objectives are established, decisions can be made about the amount of money to be distributed, how appraisals will be linked to pay, and the methods to appraise employee performance.

What Is the First Issue to Decide When Designing a Merit