Problem 1. Do you think it is ethical when an employer decides to penalize employees who eat their favorite junk foods and gain weight or smoke cigarettes, which are legal products?
Problem 2. What can an organization do to ensure that merit pay and other incentives are administered fairly? What kind of data would you gather to ensure that the pay-for-performance system is not biased in favor of any particular group? Would linking pay to objective criteria that are important to the organization—such as quality control measures, profitability, and low turnover—help or hurt in administering pay?