Surveys that directly ask employees how important pay is to them are likely to overestimate pay's True importance in actual decisions.

Surveys that directly ask employees how important pay is to them are likely to overestimate pay's True importance in actual decisions.

Answer: False.

Most employees prefer variable pay systems (e.g., incentive schemes, gain sharing, stock options) to fixed pay systems.

Most employees prefer variable pay systems (e.g., incentive schemes, gain sharing, stock options) to fixed pay systems.

Answer: False.

Talking about salary issues during performance appraisals tends to hurt morale and future performance.

Talking about salary issues during performance appraisals tends to hurt morale and future performance.

Answer: False.

New companies have a better chance of surviving if all employees receive incentives based on organization-wide performance.

New companies have a better chance of surviving if all employees receive incentives based on organization-wide performance.

Answer: True.

There is a positive relationship between the proportion of managers receiving organizationally based pay incentives and company profitability.

There is a positive relationship between the proportion of managers receiving organizationally based pay incentives and company profitability.

Answer: True.

Merit pay systems cause so many problems that companies without them tend to have higher performance than companies with them.

Merit pay systems cause so many problems that companies without them tend to have higher performance than companies with them.

Answer: False.