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Many organizations use performance appraisals of employees to guide merit pay decisions. Using an organization that you are familiar with (by working there, reading about it, knowing someone who works there, etc.), describe how performance appraisals are linked with pay. Do they use a merit pay grid? See Ch. 10 in the text for an example of such a grid. What are the two pros and two cons of linking pay with performance appraisals?

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