As an executive manager you are asked to assign bonuses and raises to the staff. Unfortunately this year, the company has not been as profitable as hoped. Your staff consists of 5 employees with the following information.

		Salary	Average Performance Rating	Background
Manager 1		$90,000	4.5 of 5	Single, hard worker, clearly the best
Manager 2		$90,000	3.5 of 5	Sole income maker for a family of 7
Employee 3		$50,000	4 of 5	Fresh from college, high potential employee
Employee 4		$40,000	4.25 of 5	Career assistant, does this job very well, promotion is not an option
Employee 5		$40,000	3 of 5	Singe, young worker has limited potential but does job reasonably well.
Yourself		$190,000	4 of 5

This year you have $20,000 to allocate to you and your staff which is a 4% increase in compensation costs which is slightly more than the 3% cost of living increase in the economy. As the executive, you may allocate the $20,000 in raises however you wish on whatever metrics you choose."

Discuss possible (at least 3) allocation methods you may consider, including the reasoning behind the allocation method.