A Laboratory Study of Merit Pay Led to Which of the Following

Multiple Choice

A laboratory study of merit pay led to which of the following conclusions?

A) Unless a merit pay is at least 10 to 11 percent of base pay,it will not produce the desired effect on employee behavior.
B) Beyond a certain point,increases in merit-raise size are likely to improve performance.
C) Smaller percentage raises given to employees at the higher ends of base-pay ranges are demotivating.
D) Nonmerit components of a raise should not be separated from the merit component.