Answer: B. It doesn’t directly motivate performance.
Typically, financial rewards are awarded to employees to encourage them, and to show that their efforts are noted and appreciated.
Awarding financial rewards based on membership or seniority only implies that employees qualify for rewards by being affiliated with the organization, and not because of any contribution by them.
Unlike when financial rewards are awarded based on employees’ contributions, awarding financial benefits to employees based on membership or seniority would perpetrate slacking off. Inherently, this system of reward would encourage employees to put in the least effort, being that they would be rewarded anyway if they keep being members.