In late 1986, Merck revised its review of performance and payment practices. The most important change was the shift from an absolute rating system for the forced distribution system, in which managers are forced to adhere to a specified distribution of performance ratings. Other major changes included revised rating categories, review performance categories and the shift in terms of performance evaluation. Discretionary awards program was also introduced. The goal is to allow students to discuss the costs and benefits of the revised plan, paying particular attention to the assessment of the relative effectiveness of aspects of the new plan. This is better than a plan to replace him? Whether to pay more closely to performance under the new plan? "Hide
by Kevin J. Murphy Source: Harvard Business School 8 pages. Publication Date: September 12, 1990. Prod. #: 491006-PDF-ENG
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