A frequently heard complaint about merit raises is that the do little to increase employee effort. What are the causes of this belief? Suggest ways in which the motivating value of merit raises may be increased.

Question A

  • Tomas Corporation had 400 employees and wishes to develop a compensation policy to correspond to its dynamics business strategy. The company wishes to employ a high- quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.

Question B

  • A frequently heard complaint about merit raises is that the do little to increase employee effort. What are the causes of this belief? Suggest ways in which the motivating value of merit raises may be increased.
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