Question: Duration A merit pay plan ( merit raise ) links an increase in base pay to how successfully an employee performs his or her job.

Duration
A merit pay plan (merit raise) links an increase in base pay to how successfully an employee performs his or her job. Merit raises can serve to motivate if employees perceive the raise to be related to the performance required to earn it. However, as merit pay plans become more complex and are less associated with daily performance, they tend to decrease employee motivation.
Analyse five (5) problems associated with merit pay plans.

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