CHAPTER 6 - UNDERSTAND YOURSELF - MAKING TOUGH DECISIONSSource: Lawler, E. E., III. (1975). Motivation Through Compensation, adapted by D. T. Hall. In Instructors Manual for Experiences in Management and Organizational Behavior. New York: John Wiley & Sons.Complete Parts 1 -3 for the assignment. Set the document up as shown in the template below. Remember to write down your reasons in the notes section.PART 1:Listed below are your notes on the performance of eight managers who work for you. As a top manager you must recommend salary increases for these eight managers who have just completed their first year with the company and are now to be considered for their first annual raise. Keep in mind that you may be setting precedents and that you need to keep salary costs down. However, there are no formal company restrictions on the kind of raises you can give. Indicate the sizes in percentages (%) of the raises that you would like to give each manager by writing a percentage next to each name. Then add up the total amount of money to be distributed when the new raises take effect.PART 2:Assume that all the eight managers entered the company at the same salary, say $30,000, which gives a total salary expense of $240,000. The board of directors has allowed a salary raise pool of 10 percent of the current salary expenses, which gives you as their manager $24,000 to give out as raises. In this variation, you are dealing with actual dollar amounts rather than just percentages for the raises. Decide who gets how much of a raise in dollars for the same 8 managers below.

Make notes on each of your decisions.Address the questions below:1. Is there a clear difference between the highest and lowest performer? Why or why not?2. Did you notice differences in the types of information that you had available to make the raise decisions? How did you use the different sources of information?3. In what ways did your assignment of raises reflect different views of motivation?PART 3Youve just received word that the company is going to merge with a larger firm. Due to the merger you must REDUCE your management workforce by three individuals or you can choose to leave the company and reduce the management team by one.Address the questions below:1. Which managers are you going to lay-off from the company? If you choose to leave, what will you do?2. What is the reasoning behind your choice