Following are all the work records of five employees. As their supervisor, you h
ID: 458338 • Letter: F
Question
Following are all the work records of five employees. As their supervisor, you have just completed their annual appraisal reviews, and it now time to make recommendations for their future salary. Your department budget has $5,780 allocated for salary increases. Distribute the $5,780 among your employees based on the descriptions for each subordinate
A. Janet Jenkins currently earns $41,000. Her performance appraisal rating was very high. She is respected by her peers and is felt to be an asset to the work group. She is divorced and has three young children to support. B. Russell Watts earns a salary of $36,000. His annual performance appraisal was average. Several members of the work group have spoken to you about the difficulty involved in Russell’s job. They feel that it is a tough and demanding job and that he is doing his best. C. Jack Perkins earns $31,250. His performance appraisal was below average, and he seems to have difficulty adjusting to his coworkers. Jack has had a difficult time this past year. His wife passed away early in the year, and his father has recently been diagnosed as terminally ill. D. Rick Jacobson earns $28,000. His performance appraisal was above average. He is respected by his peers and is generally considered to be “good guy.” E. Paula Merrill earns $28,850/ Her performance appraisal was very high. Her peers are upset because they feel that she is working only to provide second income. Moreover, her see her as trying to “show them up.”
Explanation / Answer
The compensation decision is taken with a view to balance the interests of organisation, individual and group. it is necessary to reward the high performance individuals. However, the manager also has to consider the personal and group interests, albeit to a lesser extent, as compared to the organisational interest (which is to motivate the high performance individuals so that they continue to perform in future as well). Proposed salary increment based on these guidelines to distribute the limited funds among the five employees is as below:
$ 5,780 Case Employee Salary Appraisal rating Peer Review Job Factors Personal factors, dependencies Recommendation A Janet Jenkins 41000 Very High Very good, respected NA Divorced, 3 young children to support 30% $ 1,734 B Russell Watts 36000 Average Best Demanding job NA 17% $ 983 C Jack Perkins 31250 Below Average Not good NA Wife passed away, father terminally ill 11% $ 636 D Rick Jacobson 28000 Above Average Good NA NA 17% $ 983 E Paula Merrill 28850 Very High Not good NA Nil dependence 25% $ 1,445