1. Does the pay-for-performance plan seem like a good idea? Why or why not?
2. What advice would you give Regina and Sandy as they consider their decision?
3. What mistakes did they make in adopting and communicating the new salary plan? How might Sandy have approached this major compensation change a little differently?
4. Assuming the new pay plan was eventually accepted, how would you address the fact that in the new performance evaluation system, employees’ input affects their peers’ pay levels?