Ryobi Is a Large, International Power Tool Manufacturer That Develops

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, supports the argument that Ryobi should eliminate all merit raises?

A) Performance appraisals at Ryobi occur annually, and standards vary from manager to manager.
B) Ryobi employees have the option of accepting lump-sum raises or traditional merit raises.
C) Ryobi recently began using an enterprise incentive management system to automate compensation.
D) The commission percentage for Ryobi salespeople is based on the ability to meet monthly quotas.