Question: Sometimes pay is so contingent upon performance that it creates stress for employees. Imagine a salesperson who knows that if sales targets are not met, she or he will not be able to make a house mortgage payment or pay the rent.
1. Either individually or in a group, think about the ethical implications of closely linking pay to performance.
2. Under what conditions might contingent pay be most stressful, and what steps can managers take to try to help their subordinates perform effectively and not experience excessive amounts of stress?