Human capital theory has been advanced as a rationale underlying
seniority pay. Identify two individuals you know who have performed the
same job for at least 2 years. Ask them to describe the changes in
knowledge and skills they experienced from the time they assumed their
jobs to the present.
2. Subjective performance evaluations are subject to several rater
errors, which makes objective measures seem a better alternative.
Discuss when subjective performance evaluations might be better (or more
feasible) than objective.
3. This chapter indicates that merit pay plans appear to be the most
common form of compensation in the United States. Although widely used,
these systems are not suitable for all kinds of jobs. Based on your
knowledge of merit pay systems, identify at least three jobs for which
merit pay is inappropriate. Be sure to provide your rationale given the
information in this chapter.