1. Describe the nature and causes of the compensation problem describe this incident.
2. Are "merit" salary increases always based on "merit?" Why or why not?
3. Why has Dean Smith had a policy of equal percentage salary increases for all department chairs despite the stated university policy? Are all the chairs equally meritorious?
4. How do you think Dean Smith's "merit" increases will affect Carl and his performance as department chair and faculty member? Why? What can Dean Smith do to motivate Carl if a large differential pay increase based on performance is out of the question?
5. What are the long-range benefits of a true "merit" program? What are the problems associated with the lack of such a "merit" system for department chairs? Why? If the Dean does not change his policy, what are the long-run implications for the college?