Reference no: EM133205439

Complete the following:

Compensation: Performance Appraisal Exercise Scenario

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.

Considering the guidelines that have been provided above and the information about each of the employees provided below, indicate the size of the raise that you would like to give each employee by writing a percentage next to each name. In order to give you some frame of reference, in this "make believe world" inflation is running at approximately 4% and an average, fully qualified employee who is reaching (not exceeding) all required goals is generally receiving an annual increase of 10% (I said this was make believe!!).

_____% Abraham Adams. Abe is not, as far as you can tell, a good performer. You have checked your view with others and they do not feel that he is effective either. However, you happen to know he has one of the toughest work groups to manage. His subordinates have low skill levels and the work is dirty and hard. If you lose him, you are not sure who you could find to replace him.

______% Benjy Berger. Benjy is single and seems to live the life of a carefree bachelor. In general, you feel that this job performance is not up to par, and some of his "goofs" are well known to his fellow employees.

______% Clyde Cohen. You consider Clyde to be one of your best subordinates. However, it is quite apparent that other people don't consider him to be an effective employee. Clyde has married a rich wife, and as far as you know, he doesn't need additional money.

______% David Dudley. You happened to know from your personal relationship with "Dave" that he badly needs more money because of certain personal problems he is having. As far as you are concerned, he also happens to be one of the best of your subordinates. For some reason your enthusiasm for him is not shared by your other subordinates and you have heard them making joking remarks about his performance.

______% Ellie Ellesberg. Ellie has been very successful so far in the tasks she has undertaken. You are particularly impressed by this since she has a hard job. She needs more money than many of her co-workers to pay off student loans and you are sure that the others also respect her because of her good performance.

______% Fred Foster. Fred has turned out to be a very pleasant surprise to you. He has done an excellent job and it is generally accepted among the others that he is one of the best people. This surprises you because he is generally frivolous and doesn't seem to care very much about money and promotion.

______% Greta Goslow. Your opinion is that Greta just isn't "making the grade". Surprisingly enough, however, when you check with others to see how they feel about her, you discover that her work is very highly regarded. You also know that she badly needs a raise since she is the sole support of her parents and younger brother and sister.

______% Harry Hummer. You know Harry personally and he just seems to squander his money continually. He has a fairly easy job assignment, and your own view is that he doesn't do it particularly well. You are therefore, quite surprised to find that several of the other new employees think that he is the best of the new group.

Then for the discussion board write the following:

After completing the exercise on Compensation - Performance Appraisal, please do the following:
First, post the names of the two employees who received the highest increases, what those increases were and why. Then, please do the same for the two employees who received the lowest increases.

Next, please answer the following questions (please label each response with the question number):

Question 1. Were you influenced by the personal information provided? Is this appropriate? Do you think it occurs in real life? How can we minimize it?

Question 2. Should managers have relationships with their employees outside of work?

Question 3. Why are there such discrepancies in the view of performance by the manager and the employees? Is this a good place for 360 feedback? How much should the manager be influenced by employee opinions? Does this impact equity?