conducted interviews and reviewed resumes of all the prospective candidates for the position Dr. Pancho was very excited about the new challenge and has begun several innovative projects to enhance faculty research . The teaching function in the department has always been first rate while research has been weak. Dr. Pancho has continued to be very productive , publishing three articles for a national journal and two books The university's policy is that salary increases are based on length of service and merit. Dr. Pancho had developed a very sophisticated performance appraisal system for his faculty to help him quantify salary re recommendations . His point system considers a weights different items in the areas of teaching, research, and service. Teaching and research were given weights of 40% each, with service at 20%. Dr. Pancho felt he had good documentation for all his recommendations Dr. Pancho then submitted his own annual report detailing his accomplishments as chair as well as his more personal accomplishments . From his perspective , he felt he deserved at least a 15 % increase since his department had made major strides in a number of areas while the other chairs were professionally active on the national level and none had published in the past year. His teaching evaluations were also outstanding for the past five years Dean Lacap sent out letters to all department chairs in May and Dr. Pancho was shocked to learn that his salary increase was just 7%. He received information through the "grapevine " that all the chairs had received the 7% increase . He also percentage increases each year. Country to the official university policy, there were no distinctions based on merit Dr. Pancho was visibly upset about what he considered to be a major inequity. He then called the dean's secretary to schedule an appointment to discuss the situation with Dean Lacap Help Dean Lacap and Dr. Pancho solve this problem by following the steps below: 1. State the main problem of Dr. Pancho