CASE STUDY

It's annual performance feedback time at Allie's Apples, a successful maker of a variety of apple inspired foods. Employees first receive a copy of their performance evaluation via email, then discuss it with their manager within one week to analyze any performance issues and set goals for the next year. In addition, raises are given at this time and communicated to employees when they meet with their manager.

Sally has been working in marketing for Allie's Apples for ten years. She has a bachelor's degree in marketing and is a high performer. Sally sets high goals for herself, and often works late to get things done.

Dave has been working in marketing for Allie's Apples for five years. He is a solid performer, but not as good as Sally despite having a Master's degree in marketing. He often leaves work a little early to play sports with his friends.

If Dave and Sally get identical raises, when Sally compares herself to Dave Sally is likely to feel underpaid