Which of the Following Statements Does NOT Accurately Describe What

Multiple Choice

Which of the following statements does NOT accurately describe what is needed to make a merit pay plan work well?

A) Merit pay should be based on realistic and accurate measures of individual work performance.
B) Merit pay should create a belief among employees that they must perform at high levels to achieve high pay.
C) Merit pay should be higher for those employees whom the manager personally favors.
D) Merit pay should clearly differentiate between high and low performers in the amount of pay received.
E) Managers should avoid confusing "merit" aspects of a pay increase with "cost-of-living" adjustments.