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Question
Ryobi is a large, international power tool manufacturer that develops affordable, high-quality products such as drills, circular saws, and routers for both homeowners and craftspeople. As the company continues to grow, its top executives want to ensure that employees are appropriately paid for their performance and that financial incentives are both fair and effective. Currently, the firm provides merit raises based on performance appraisals; however, executives are considering changing the current incentive plan.Which of the following, if true, undermines the argument that Ryobi should discontinue all merit raises?
A) Ryobi managers have noticed significant productivity improvements among employees who receive merit raises.
B) Ryobi managers have not received significant training about conducting performance appraisals.
C) Ryobi's top competitor is considered a high-performance work system within the industry.
D) Ryobi employees have expressed that they would prefer stock options to merit raises.
Answer
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