If Compu-Globo established a merit pay program, which of the following would be true? a) All of these choices are correct. b) It guarantees that employees are only rewarded on the basis of ability and motivation. c) It would be inexpensive to implement and maintain. d) It could become expensive quickly. e) Teamwork would likely increase among Compu-Globo employees.

If Compu-Globo established a merit pay program, the following would be true:

b) It guarantees that employees are only rewarded on the basis of ability and motivation.

Explanation:

With a merit pay program, each worker is rewarded based on their performance.  One big advantage of the merit-based pay is that each individual is paid for his or her worth.  However, its major pitfalls are that it is very subjective, and it increases unhealthy competition among individuals.  This increased competitiveness may not be beneficial to the organization's objectives.