Thesituation in this case, "The Proposed Merit Pay Program: Should the Winners Take All?" revolves around the proposed performance appraisals and the basis for salary increases. To some extent, this case study asks you to consider the benefits and problemswith the current reward system and a new proposed system.

Caution: To give a proper answer, and its effect upon salary increase structure. You will need to know (1) how much money you will be distributed, (2) specifically, to whom you will be distributing, and (3) in what amounts under each plan.The biggest issue will be justifying which professors are eligible to receive pay increases.

The Objectives

1. To improve your understanding of the relationship between performance appraisal ratings and pay increase programs.
2. To demonstrate the need for compatibility of performance appraisal ratings with pay increase programs.
3. To develop skills in the use of performance appraisal data to develop pay increase recommendations
4. To illustrate the challenges and complexities of administering a merit-based pay increase program.

Answer the following questions after you create your table:

1. Discuss the methodology you used to create your table including how should Professor Foreman determine the specific amount of merit raises for each faculty member under the existing plan? under the proposed plan? What amount would each faculty member receive? (Just discuss how you created your table). As with all discussions regarding a personal methodology, the use of I statements is perfectly acceptable here.
2. Discuss the possible effects of the existing plan and the proposed plan, (a) which plan do you believe is a better plan, why? (b) what recommendation should Professor Foreman make to the Dean? Why? (No I statements and use cites to support your answers)
3. From your consideration and study of the case issues, evaluate the use of merit pay.