Which of the following is NOT a reason that performance-based pay systems may be ineffective?

The performance-based pay systems are designed to motivate employees by linking compensation directly to their performance levels. While option B states that "money is an ineffective motivator for most employees," this statement is often debated in the field of organizational behavior and management. Many studies indicate that monetary rewards can indeed be effective motivators, especially in environments where pay is tied to tangible performance metrics. Therefore, this option does not fit as a reason that performance-based pay systems could be ineffective.

On the other hand, lack of clear goals, complexity of the pay structure, and poor communication of performance expectations are all valid factors that can hinder the effectiveness of a performance-based pay system. Without clear goals, employees may not know what is expected of them, leading to confusion and disengagement. A complex pay structure can create misunderstandings about how pay is determined, making employees feel uncertain about their opportunities for earning bonuses or raises. Lastly, if performance expectations are not communicated effectively, employees may feel they have no way to achieve the pay incentives offered, which can lead to frustration and diminished motivation.