Economic forces, such as interest rates, are considered to be ...

[urbanoutfitters]

Economic forces, such as interest rates, are considered to be specific environmental forces rather than a general environmental forces.
 
  Indicate whether the statement is true or false

Question 2

Employers may award merit pay as traditional merit increases that increase an employee's base pay or as a lump sum merit raise. Explain the pros and cons of these two choices.
 
  What will be an ideal response?

[ecabral0]

Answer to Question 1

FALSE

Answer to Question 2

Answer: Traditional merit increases are cumulative but most lump sum merit raises are not. For employees receiving traditional merit increases, raises in subsequent years are based on the new higher amount. With lump sum merit raises, payroll expenses can be minimized over time while still offering an incentive. Further, the lump sum amount may seem more impressive to employees because it is a large amount paid at one time. For instance, a lump sum merit payment of 1500 may seem more desirable than a traditional weekly merit payout of 29 for 52 weeks.