Experiential Exercises

The Pay Raise

OBJECTIVES

1. To further your understanding of salary administration.

2. To examine the many facets of performance criteria, performance criteria weighting, performance evaluation, and rewards.

INSTRUCTIONS

1. Complete the Pay Raise Worksheet.

2. In the Forum, discuss your conclusions about who received which raise and your criteria used to award the salary increases.

Pay Raise Worksheet

April Knepper is the new supervisor of an assembly team. It is time for her to make pay raise allocations for her subordinates.She has been budgeted $3,000 to allocate among her seven subordinates as pay raises. There have been some ugly grievances in other work teams over past allocations, so Knepper has been advised to base the allocations on objective criteria that can be quantified, weighted, and computed in numerical terms.After she makes her allocations, Knepper must be prepared to justify her decisions. All of the evaluative criteria available to Knepper are summarized as follows:

Supervisory Ratings

OutputAbsent

Employee Seniority Rating* Rate Skills Initiative Attitude Personal

David Bruce15 yrs. 0.580.5% Good Poor Poor Nearing retirement. Wife just passed away. Having adjustmentproblems.

Eric Cattalina12 yrs. 0.862.0 Excellent GoodExcellent Going to night school to finish his BA degree.

Chua Li 7 yrs. 0.80 3.5Good ExcellentExcellent Legally deaf.

Marilee Miller 1 yr. 0.50 10.0 Poor Poor Poor Single parent with three children.

Victor Munoz3 yrs. 0.622.5PoorAverage Good Has six dependents. Speaks little English.

Derek Thompson11 yrs.0.648.0Excellent Average AverageMarried to rich wife. Thompson Personal Problems

Sarah Vickers 8 yrs. 0.76 7.0 Good PoorPoor Women's activist. Wants to operate a union.

Please answer :

Look at Pay Raise Worksheet posted .You are the manager making the decision on how to allocate the $3,000 among your workers.As a manager, you will never have enough allocated to give everyone what you think they deserve.

1. How do you determine the allocation?What criteria can you and can you not use to do so? Use the material from the text as well as your own research.

2. What is a truly motivating amount versus a pay increase that is less than motivating and may even be insulting?For example, if you give a $.10/hour pay raise, is this motivating?

3.Is it better to give the amount you have to distribute to two or three top performers or to give something to each employee?