Fundamentals of Management, 8th ed

telecommuting

Allowing employees

to spend part of their

time working offsite,

usually at home

reward system

The formal and

informal

mechanisms by

which employee

performance is

defined, evaluated,

and rewarded

310

Part 4: Leading

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Merit Reward Systems

Merit reward systems are one of the most fundamental forms of performance-based

rewards.

Merit pay

generally refers to pay awarded to employees on the basis of the

relative value of their contributions to the organization. Employees who make greater

contributions are given higher pay than those who make lesser contributions.