Some organizations have a merit performance approach where increases and bonuses are typically given to seniority and how long one has been with the organization. On the other hand, there are some that are more focused on a pay for performance structure, where increases and bonuses are given to those who perform the job well.
There is a tendency among businesses today to use incentive pay plans over merit or seniority pay plans. Which of these plans do you feel is the most effective? Explain why you feel this way.
