Assignment 5 - What is "merit pay?" Do you think it's a...

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What is "merit pay?" Do you think it's a good idea to award employees merit raises? Why? Why not? Merit pay is “any salary increase the firm awards to an individual employee based on his or her individual performance” (Dessler, p. 438). In order for a merit pay system to work, the employer must clearly define performance standards and performance levels. Employees should be able to understand what is expected of them and at what performance level they will be awarded. Merit pay is a great way for employers to get employees motivated. Merit pay will encourage employees to improve their skills and abilities related to their jobs. With the increased performance and the honing of employee skills and abilities, this can lead to an increase in profits for an organization. Merit pay allows for advancement in a company. It is also advantageous in that merit pay will attract more job applicants who are qualified and willing to work hard. Merit pay increases motivation among employees and will most likely increase
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This note was uploaded on 02/14/2011 for the course MBA 621 taught by Professor Smith during the Spring '11 term at University of Hawaii - Hilo.

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Assignment 5 - What is "merit pay?" Do you think it's a...

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