The Pay Raise

MGT 2313 Principles of Management The Pay Raise Human Resources Motivation & Compensation Critical Thinking Exercise You are the new supervisor of an assembly team in a manufacturing company. It is time for you to make pay raise allocations for your subordinates. You have a total of $30,000 to distribute as you see fit, and at your discretion, to your team members. You are aware that there have been some ugly grievances filed in the past over how annual distributions were made. Your boss advised you to be as objective as possible as you decide how to allocate the money since it is very likely you will have to justify your actions. Evaluate all the information contained in the table. How much of it you use, or how much of it you discard, is up to you to decide. However, you must explain how you will distribute the allocation.

SUPERVISORY RATINGS EMPLOYEE David Bruce OUTPUT ABSENT SENIORITY RATING RATE SKILLS INITIATIVE ATTITUDE PERSONAL Nearing retirement. Wife just past away. Having adjustment Poor problems. Going to night school to Excellent finish his BA degree. Excellent Legally deaf. Single parent with Poor three children. Has six dependents. Good Speaks little English. Married to rich wife. Average Personal problems. Women's activist. Wants to create a Poor union.

15 yrs Eric Cattalini Chua Li Marilee Miller Victor Muñoz 3 yrs Derek Thompson 11 yrs Sarah Vickers 8 yrs 12 yrs 7 yrs 1 yr

0.58 0.86 0.80 0.50 0.62 0.64

5.0%

Good

Poor

2.0% Excellent Good 3.5% Good Excellent 10.0% 2.5% Poor Poor Poor Average

8.0% Excellent Average

0.76

7.0%

Good

Poor

Note: Output rating determined by production rates less errors and quality problems.