When Determining the Size of the Monetary Increase, What Must

Multiple Choice

When determining the size of the monetary increase, what must management take into consideration for pay-for-performance to be fully successful?

A) The employer should consider the standard of living of its employees.
B) The increase should include the opportunity to increase benefits too.
C) The increase should be variable if the employee has dependents.
D) The increase must be greater than the cost of living.