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Merit Pay Grids Have the Potential to Undermine Employee Motivation

React to the statement: “Merit pay grids have the potential to undermine employee motivation.” Please discuss your views.  

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Management: “Merit Pay Grids Have the Potential to Undermine Employee Motivation”

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“Merit Pay Grids Have the Potential to Undermine Employee Motivation”

            The merit pay strategy rewards the organizational employees for attaining well defined criteria of performance (Martocchio, 2014). If the employees do not meet the performance criteria, they are not rewarded. This remuneration strategy is based on the believe that the rewards will motivate the workers to work hard and contribute to high organizational performance. However, this strategy neglects the negative impact of the merit pay on employee motivation. Merit pay grids can undermine the employee motivation.           Different workers have different capabilities and work in different departments that produce services and goods of different values. Some employees who work on undervalued but important departments of an organization may feel undermined and this may affect their self-esteem, making them frustrated. When such employees feel their efforts are unappreciated, owing to the fact that the organizational management off………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

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