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Merit Pay and the Motivating Value

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A frequently heard complaint about merit raises is that they 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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Please see response attached, which is also presented below. I hope this helps and take care.

RESPONSE:

1. A frequently heard complaint about merit raises is that they 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.

This is an interesting question and ties into theories of motivation. Theories of motivation and inducements of motivations (beliefs about the source of motivation and the inducements of motivation) develop through experiential and empirical
evidence. Therefore, when something occurs that motivates an employee, for example, the manager forms a belief based on that experience (i.e., when I provided the employee with feedback, she worked more efficiently, etc.). Over time, for example, managers and researchers find ...

Solution Summary

Since a frequently heard complaint about merit 'raises' is that they do little to increase employee effort, this solution explains the causes of this belief. It also suggests ways in which the motivating value of merit pay efforts may be increased.

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