Reference no: EM132278679

Assignment: Compensation: Performance Appraisal

You have to make salary increase recommendations for eight employees that you supervise. All of the engineers are of the same age, education and experience (no previous experience before joining your company). They have just completed their first year with the company and are now to be considered for their first annual raise.

In making your recommendations, you should keep in mind that:

1. You are likely to be setting precedents for future salary decisions.

2. Your group has been asked to hold down salary costs to the company as much as you can.

3. You are concerned about equity. All decisions ought to be consistent with each other.

4. Employment opportunities are good for engineers in other companies. The probability is very high that any of these engineers will leave if they did not believe that they were rewarded equitably for their year's effort. However, remember that maintaining equity is not the same as maintaining equality.

5. Your company has a policy of maintaining salaries which correspond to those in the community and the industry at large. Your company is competitive in attracting and holding employees. However, it has no fixed job evaluation plans or salary schedules. It prefers to remain as flexible and adaptive as possible in offering competitive salaries and salary increases - although it is constrained by the desire to keep salary costs down and to maintain fair and equitable relations among its employees.

Information related to above question is enclosed below:

Attachment:- Compensation-PerformanceAppraisal.rar