One of the problems with merit raises is the risk of providing a long-term future reward for a short-term past performance.What is one way to address this problem while maintaining the performance appraisal system?

A) Replace merit raises with merit bonuses.
B) Use stock options instead of merit raises.
C) Use a team to assess performance.
D) Outsource merit systems.

Merit Raises

Salary increases awarded to employees based on their job performance, often evaluated through performance appraisals.

Merit Bonuses

Financial rewards given to employees based on their performance and achievements, typically as a way to incentivize high-quality work.

Performance Appraisal System

The formal mechanism through which employee performance is assessed, feedback is provided, and development goals are set.