pay annual raise

1. Read the accompanying Employee Profile Sheet and decide on a dollar amount pay increase for each of the eight employees. 2. You should make salary increase recommendations for each of the eight managers that you supervise. There are no formal company restrictions on the size of raises, but the total for everyone should not exceed the $14,104 (a 4-percent increase in the salary pool) which has been budgeted for this purpose. There is a variety of information upon which to base the decisions, including a productivity index (PI), which Industrial Engineering computes as a quantitative measure of operating efficiency for each managers work unit. This index ranges from a high of 10 to a low of 1. Indicate the dollar increase that you would give to each manager and be prepared to answer why. _____ A. Alvarez -- Alvarez is new this year and has a tough work group whose task is dirty and difficult. THis is a hard position to fill, but you dont feel Alvarez is particularly good. The word around is that other managers agree with you. PI = 3. Salary = $43,000 ______ BJ Cook -- Cook is single and a swinger who enjoys leisure time. Everyone laughs at the problems BJ has getting the work out, and you feel it certainly is lacking. Cook has been in the job 2 years. PI = 3. Salary = $44, 000 _____ Z. Davis -- in the position 3 years, Davis is one of your best people even though some of the other managers dont agree. With a spouse who is independently wealthy, David doesnt need money, but likes to work. PI = 7. Salary = $46,000 _____ M. Frame -- Frame has personal problems and is hurting financially. Others gossip about Frames performance, but you are quite satisfied with this second-year employee. PI = 7. Salary = $44,700 _____ 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 = $44,000 _____ B. Ratin -- A first-year manager whom you and the others think is doing a good job. This is a bit surprising since Rating turned out to be a free spirit who doesnt seem to care much about money or status. PI = 9. Salary $43,800 _____ H. Smith -- 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 $43,000 _____ 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 doesnt 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 = $43,000