You Have Designed Your Merit Pay Grid So That Employees

Multiple Choice

You have designed your merit pay grid so that employees with a "satisfactory" performance rating receive no merit increase if they are in the third and fourth quartiles, and a three or four percent merit increase if they are in the first or second quartile. What is the logic behind your decision?

A) You believe that employees paid above the midpoint have already been rewarded for "satisfactory" work.
B) You believe that this practice ensures procedural justice.
C) You believe that it is important to maintain a compa-ratio of less than 1.
D) You believe that pay raises should constitute a "just noticeable difference."