$2.$ HR Decision Analysis Exercise: The Case of Gravity Payments

The CEO of Gravity Payments, Dan Price, made national headlines in $2015$ when he announced that he would be increasing all employees$$ annual pay to $$70,000$ over the course of several years. Price had read a study that showed that emotional well$-$being improved as income increased, up to about $$75,000$ a year, and he was inspired to raise his employees$$ pay with the hope that it would lift their emotional well$-$being. Reportedly, he moved very quickly when making this major decision. In the months that followed his compensation announcement, Price was both cheered and jeered. His supporters touted his inspirational message, while his critics argued that it was all a publicity stunt and questioned his motives. In addition, not everyone within the company was happy with this decision. Within $3$ months, two of his most$-$valued employees had quit, citing the fact that newer and less experienced employees would make the same amount of money. Some of his company$$s clients commended him, while other clients said he made their job harder because they feared they would have to justify the costs of services that might come with the pay increases.

Now, answer the following questions regarding what you think about Price$$s HRM decision making in terms of the five characteristics of effective HRM decisions depicted below.