1. Read the following job descriptions and decide on a percentage pay increase for each of the eight employees.

2. Make salary increase recommendations for each of the eight managers that you supervise. There are no formal company restrictions on the size of raises you give, but the total for everyone should not exceed the $10,900 (a 4 percent increase in the salary pool) that has been budgeted for this purpose. You have a variety of information on which to base the decisions, including a “productivity index” (PI), which Industrial Engineering computes as a quantitative measure of operating efficiency for each manager’s work unit. This index ranges from a high of 10 to a low of 1. Indicate the percentage increase you would give each manager in the blank space next to each manager’s name. Be prepared to explain why.

____ A. Alvarez Alvarez is new this year and has a tough workgroup whose task is dirty and difficult. This is a hard position to fill, but you don’t feel Alvarez is particularly good. The word around is that the other managers agree with you.

PI = 3. Salary = $33,000.

____ B. J. Cook Cook is single and a “swinger” who enjoys leisure time. Everyone laughs at the problems B.J. has getting the work out, and you feel it certainly is lacking. Cook has been in the job two years. PI = 3. Salary = $34,500.

____ Z. Davis In the position three years, Davis is one of your best people, even though some of the other managers don’t agree. With a spouse who is independently wealthy, Davis doesn’t need money but likes to work. PI = 7. Salary = $36,600.

____ M. Frame Frame has personal problems and is hurting financially. Others gossip about Frame’s performance, but you are quite satisfied with this second-year employee. PI = 7. Salary = $34,700.

____ C. M. Liu Liu is just finishing a fine first year in a tough job. Highly respected by the others, Liu has a job offer in another company at a 15 percent increase in salary. You are impressed, and the word is that the money is important. PI = 9.

Salary = $34,000.

____ B. Ratin Ratin is a first-year manager whom you and the others think is doing a good job. This is a bit surprising since Ratin turned out to be a “free spirit”

who doesn’t seem to care much about money or status. PI = 9. Salary = $33,800.

____ H. Smith Smith is a first-year manager recently divorced and with two children to support as a single parent. The others like Smith a lot, but your evaluation is not very high. Smith could certainly use extra money. PI = 5. Salary = $33,000.

____ G. White White is a big spender who always has the latest clothes and a new car. In the first year on what you would call an easy job, White doesn’t seem to be doing very well. For some reason, though, the others talk about White as the

“cream of the new crop.” PI = 5. Salary = $33,000.

3. Convene in a group of four to seven persons and share your raise decisions.

4. As a group, decide on a new set of raises and be prepared to report them to the rest of the class. Make sure that the group spokesperson can provide the rationale for each person’s raise.

5. The instructor will call on each group to report its raise decisions. After discussion, an “expert’s” decision will be given.