All of the Following Are Reasons Why Merit Pay Plans

Multiple Choice

All of the following are reasons why merit pay plans can backfire except that

A) supervisors often tend to minimize differences in employee performance when computing merit raises, to ensure that everyone gets a raise of at least the cost of living.
B) supervisors often tend to minimize differences in employee performance when computing merit raises.
C) the usefulness of the merit pay plan depends on the validity of the performance appraisal system; if performance appraisals are viewed as unfair, so too will the merit pay that is based on them.
D) almost every employee thinks that he or she is an above-average performer, thus being paid a below-average merit increase can be demoralizing.
E) only pay (or other rewards) tied directly to performance can motivate improved performance.