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Company BDC is implementing a new employee bonus system. While normal pay raises for personnel will be granted as in the past, the new system will choose the top employees for an additional $1,000 bonus. The exact number of bonus recipients was as yet undecided, but could be as many as 20% of the 151 employees. Senior Management was divided on the issue. One of the managers said he'd seen incentive plans like this one before, and that they never seem to be fairly administered. He said: "People never seem to get what they think they deserve, and it just causes bad feelings all around." Despite the complaints, management was determined and the bonus plan was set up for the following year. A new committee was struck to oversee the awarding of bonuses that would be awarded based on supervisor ratings of employee performance. These ratings already existed in Company BDC, although they currently had no current influence on employee compensation. (Mostly, the ratings were used as a track record for justifying employee dismissal.) Ratings were done on a 10-point scale, so each employee received a score from 1 to 10. Training sessions were held to help supervisors establish standards, but there was still a wide variation among supervisors in the scores they assigned. This variation didn't matter so much in the past since the scores were generally only used for employee termination. This year, however, the ratings would be used to determine bonus-worthiness. Suppose you are a member of the bonus committee. Use the data in excel file to determine your list of bonus winners, and defend your list. Is your allocation fair and free from bias?
ID
Sex (1=F)
Race (1=min)
Age (yrs)
Dept No.
Perf. Rating
1
2
35
5
60
3
61
4
36
40
8
6
59
7
26
9
41
10
50
11
22
12
62
13
23
14
43
15
16
42
17
25
18
29
19
20
55
21
48
24
44
27
28
30
31
32
33
34
39
46
37
38
45
58
57
47
49
51
52
53
54
56
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
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