Awarding Salary Increases Because pay for performance is an important factor gov
ID: 371016 • Letter: A
Question
Awarding Salary Increases
Because pay for performance is an important factor governing salary increases, managers must be able to defend the compensation recommendations they make for their employees. Merit raises granted under a pay-for-performance policy must be based on objective appraisals if they are to achieve their intended purposes of rewarding outstanding employee performance. As managers know, however, they must deal with other factors that can affect salary recommendations. These may include the opinions of the employee’s peers or extenuating circumstances such as illness or family responsibilities. The purpose of this exercise is to provide you with the experience of granting salary increases to employees based on their work performance and other information.
Assignment
Following are the work records of five employees. As their supervisor, you have just completed their annual appraisal reviews, and it is 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.
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.
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.
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.
Rick Jacobson earns $28,000. His performance appraisal was above average. He is respected by his peers and is generally considered to be a “good guy.”
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 a second income to her household. Moreover, her peers see her as trying to “show them up.”
Share your results with other class members. Be prepared to explain your allocation of money.
Explanation / Answer
Salary distribution as per the performance is depend on many factors decided by the organization in their appraisal format. It is based on objective of achieving certain pruposes by an employee.
Total $5780 fund is available to distribute for increasing in salary. There are five employee's records available
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.
As Janet Jenkins have best performance in work and has responsibilities of family so She deserves $1400 raise in her salary.
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.
To motivate Russell Watts as his work difficulties are noted down by subordinates as well. He deserve a raise $1200 even his performance is average.
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.
Jack Perkins is facing bad time in his family and his performance is also below average but company can't take action against him because time is not supporting him now. When all subordinates and company management support him mentally he will give his best performance again. So he deserve a raise of $ 580 in his salary.
Rick Jacobson earns $28,000. His performance appraisal was above average. He is respected by his peers and is generally considered to be a “good guy.”
Rickk Jacobson is performing above average and he is an asset for company so he deserve the same raise of $1400 in his salary as highest got by Janet Jenkins.
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 a second income to her household. Moreover, her peers see her as trying to “show them up.”
Paula Merrill is performing very well but her peers are not happy to give her more incentive as she don't have much family responsibilities. But it will not affect the appraisal as her performance is very good for company. She should get raise of $1200.
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