A serious challenge for managers is implementing a reward system that treats all employees equitably and generates maximum performance. Please read the scenarios for the eight managers and then, for your initial discussion, make the following recommendations:

1. A base salary for each manager. You have a total budget of $400,000.
2. For each manager, allocate a raise with a dollar amount. You are allowed to divide $50,000 between the managers.
3. Justify your reasons for the base salaries and the raises. What is your policy? What process did you you use to distribute the money? Do you need additional information about the managers? If so, how would you obtain the information?

Education and Years of Employment	Description of Manager
2 year college degree, 10 years with the company	Abraham McGowan. 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 workgroups to manage. His subordinates have low skill levels, and the work is dirty and hard. If you lose him, you are not sure whom you could find to replace him.
Bachelors degree, 2 years with the company	Benjy Berger. Benjy is single and seems to live the life of a carefree bachelor. In general, you feel that his job performance is not up to par, and some of his goofs are well known to his fellow employees.
MBA, 5 years with the company	Clyde Clod. You consider Clyde to be one of your best subordinates. However, it is obvious that other people do not consider him to be an effective manager. Clyde has married a rich wife, and as far as you know, he does not need additional money.
High school graduate, 3 years with the company	David Doodle. You happen to know from your personal relationship with Doodles 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 is not shared by your other subordinates, and you have heard them make joking remarks about his performance.
Bachelors degree, 4 years with the company	Ellie Ellesberg. Ellie has been very successful so far in the tasks she has undertaken. You are particularly impressed by this because she has a hard job. She needs money more than many of the other people, and you are sure that they respect her because of her good performance.
MBA, 1 year with the company	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 at the company. This surprises you because he is constantly frivolous and does not seem to care very much about money and promotion.
High school graduate, 6 years with the company	Greta Goslow. Your opinion is that Greta is just not cutting the mustard. Surprisingly enough, however, when you check to see how others feel about her, you discover that her work is very highly regarded. You also know that she badly needs a raise. She was recently widowed and is finding it extremely difficult to support her household and her young family of four.
2 year college degree, 7 years with the company	Harry Hummer. You know Harry personally, and he just seems to squander his money continually. He has a fairly easy job assignment, and your view is that he does not do it particularly well. You are, therefore, quite surprised to find that several of the other new managers think that he is the best of the new group.