PROBLEM SOLVING Human Resource Management Make salary increases for each of the eight managers you supervise. There are no formal company restrictions on the size of raises you give, but the total for everyone should not exceed $10,900 (a four percent increase in the salary pool), which has been budgeted for this purpose. You have 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 manager's work unit. This index ranges from a high of 10 to a low of one. Indicate the percentage increase (or dollar amount) you would give each manager in the blank space next to each manager's name. Explain your decisions. 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 don't feel Alvarez is particularly good. The word around is that the other managers agree with you. PI=3. Salary= $33,000. B. J. Cook Cook is single and a "swinger" who enjoys leisure time. Everyone laughs at the problems B.J. has getting the work out, and you feel it certainly is lacking. Cook has been in the job two years. PI=3. Salary= $34,560. -Z Davis In the position three years, Davis is one of your best people, even though some of the other managers don't agree. With a spouse who is independently wealthy, Davis doesn't need money but likes to work. PI=7. Salary= $36,600. M. Frame Frame has personal problems and is hurting financially. Others gossip about Frame's performance, but you are quite satisfied with this second year employee. PI=7. Salary=$34,700. 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=$34,000. -B. Ratin Ratin is a first-year manager whom you and the others think is doing a good job. This is a bit surprising since Ratin tumed out to be a "free spirit" who doesn't seem to care much about money or status. PI-9. Salary=$33,800