Case Pay Increase

The reward system is a core policy in your company. As a CEO you consider that you should be totally involved in the decision of the pay increases, especially for the managers $(300$ people out of a total payroll of $1000).$ You conducted thorough interviews with the heads of departments in order to know better the ten young key talents of your company who have been recruited two years ago. These ten individuals were awarded the same level of a degree at the university but in different academic areas. They were recruited as managers and they all are at the same level in the classification table of the company. For the first year they all received the same salary of $40000.$ At the end of the first year they all got the same increase of $2500$ on a yearly basis. The policy is now to have a fully individualized policy for the pay increases of managers and you must decide how much each one will receive and which arguments you will put forward in order to justify the decision. You are allocated an amount of $18000$ for the sum of the increases dedicated to the ten young managers. The provisional rate of inflation is $1\%.$ The company has abandoned the policy

of an identical general pay increase for managers since the early $2000$s$.$ Of course some other HR decisions may complete the monetary reward, such as training, promotion, mobility that you should also consider for each of them. You should not forget that these ten young managers know each other very well, they regularly talk to each other especially about the decisions that concern them directly. You are personally committed to make fair and coherent decisions that will clearly confirm the policy of the company to reward performance and results. For each of the ten managers, you should point out the main arguments that will be put forward during the interview when you will present your decision.

Ahmed

He is a marketing guy and works as an assistant product manager. A few heads of department are sometimes annoyed by his somehow pretentious style but everybody acknowledges that he is such an energetic person. His presentations are outstanding even though he may sometimes not take enough care of the statistics and hard data, which puts some suspicion on his analysis and conclusions. Clearly, if he improves on this particular point, he has a genuine high potential.

Bob

Bob is also an assistant product manager. He is a nice and modest person and he knows how to persuade people in a very gentle way. He knows how to push forward every project in a very meticulous way by evaluating the available facts and data at each stage of the process. He is such a trustworthy and reliable person. He is an excellent deputy but we can wonder whether he will be constructive enough to reach the highest positions in such a dynamic company.

Carmen

She is a very sympathetic, open$-$minded, joyful and easy$-$going person. Everybody likes her: she is in charge of a workshop in one of the most dangerous and inconvenient areas of the plant. The people who work there are rude and not very friendly; they do accept the difficult working conditions only because it allows them to get high bonuses. When she compares her job against the one of her colleagues who are also in the manufacturing, Carmen is convinced that she got the most difficult one and she expects that the company will take that into account and reward her accordingly. The company wishes to maintain her at this position for the next two or three years.

Dorothea

Dorothea is an electrical engineer, specialized in instrumentation and control systems. She is a specialist and has considerably improved her expertise in the company: she has brought a lot to the mechanical development team and her record is genuinely outstanding given her limited experience. She is an enthusiastic hardworking person who is not very interested in people. Her lack of tact has irritated so many executives and staff, and we can really question her potential to manage people in the future.

Edward

Edward is also an engineer. Technically speaking, he happens to be very solid but not bright. After being $20$ months on a first job he has now moved for four months to a position of assistant to the head of production in a plant. He has been the first university graduate to be appointed to such a job in that plant and he sometimes irritates his colleagues who consider him as a rookie without any experience who will outstrip them soon. For the same reasons Edward also irritates the operators and they do not make his life easy consequently. However he never gave up and he is step by step gaining consideration in the plant, thanks to his courage and competency.

Fadhila

She is an engineer and works as a designer. Her colleagues have a similar academic background and they welcomed her well. She is a bright technician and her contribution to the team is satisfactory. Fadhila is pretty happy with her current positi