The HR director of an investment bank has called a meeting of senior employees to discuss the year’s bonuses.

While rival banks are giving out bonuses of over

$3 million to each senior employee, the HR director is arguing that the bonuses in this organization should be more evenly spread among the entire workforce. The HR director has worked out a complex formula that takes into account the pay scale and years of service of each employee. Senior employees argue that there is no personal performance element to the bonus. They consider themselves to be the profit-makers and reject the proposals. Students divide into groups of five to role-play this situation. First, they should discuss the implication this is likely to have on employee satisfaction with their pay, jobs, and life in general. Second, they should discuss what repercussions, if any, this inequity is likely to have for the firm. Finally, the team should develop a plan for explaining to employees why the changes are happening.