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21. According to the statement, in order to ensure high productivity, companies should base their employees salaries and job security solely on job performance, and not on length of service to the company. I agree that salary increases and job security are powerful incentives to high achievement and should generally go to those who do the best work. However, to ensure employee productivity, companies must also reward tenured employees with cost-of-living raises―though not with job security. On the one hand, rewarding average job performance with large pay increases or promises of job security is a waste of resources―for two reasons. First, complacent employees will see no reason to become more productive. Secondly, those normally inclined to high achievement may decide the effort isnt worthwhile when mediocre efforts are amply compensated. Companies should, therefore, adjust their pay schedules so that the largest salaries go to the most productive employees. On the other hand, employees who perform their jobs satisfactorily should be given regular, though small, service-based pay increases―also for two reasons. First, the cost of living is steadily rising, so on the principle of fair compensation alone, it is | 
