Develop a fair procedure that will be used to determine merit raises. Decide the dollar raise to be given to each professor. Case questions are to be thoroughly answered with significant justification and explanation. Each case question is to be clearly labeled with the specific question number from the book.

69 EXERCISE Allocating Merit Raises I OBJECTIVES A. To make you aware of the difficulties involved in making merit tale decisions R. To familiarize you with possible criteria a manager can use in making meritage decisions 11. OUT-OF-CLASS PREPARATION TIME: 10-20 minutes to read exercise and decide each professor's merit raise III. IN-CLASS TIME SUGGESTED: 30-40 minutes IV. PROCEDURES Father at the beginning of or before coming to dass, you should read the exercise and determine menit raises for each professor To start the exercise, the instructor will divide the class into groups of three to five students. Each group should develop a fair procedure that will be used to determine merit raises and then decide the dollar raise be given to each professor. After each group finishes, one member will write the raise amounts on the board of overhead for all class members to see. Then, once all groups have disclosed their raises, a spokesperson for each group will explain the procedure used to determine their raises. SITUATION Small State University is located in the eastern part of the United States and has an enrollment of about 8,000 students. The College of Business has 40 full-time and more than 30 part-time faculty members. The college is divided into five departments: Management, Marketing Finance and Accounting, Decision Sciences, and Information Technology, Faculty members in the Management Department are evaluated each year based on three primary criteria: 1) teaching, 2) research, and 3) service. Teaching performance is based on student course evaluations over a two-year period. Service to the university, college, profession, and community is also based on accomplishments over a two-year period. Research is based on the number of journal articles published over a three-year period. Teaching and research are considered more important than service to the university. In judging faculty performance, the department chair evaluates each professor in terms of four standards: Far Exceeds Standards, Exceeds Standards, Meets Standards, and Fails to Meet Standards. The results of this year's evaluations are shown in Exhibit 4.3. Due to financial problems and cutbacks this year, Small State University has agreed to give raises totaling just $6,300 to the Management Department. Your task as department chair is to divide the $6,300 among the faculty members. Keep in mind that these raises will likely set a precedent for the future and that the professors will view the raises as a signal for what behavior and achievements are valued. A profile of each of the professors is provided below. Professor Houseman: 55 years old; 25 years with the university, teaches Principles of Management sections; teaches over 400 students per year; has written over 40 articles and up with given over 30 presentations since joining the college; wants a good raise to catch others. WA Me Research Exceeds Far Exceeds Meets New Hire Exceeds Fails to Meet RT 3 or Clinical Currently Teaching 2.000 Exceeds SIN.000 Deceeds 000 Meet 9.000 New Hire $100.000 For Exceeds 0.000 Jones Fut Ters Mets Exceed Mees Management and Organisational Behavior, stepped down as and wants a good raise as a reward for obtaining the grant. department chair thurety Professor Joan 49 years old: 10 years with the university: teaches Human Resource ang the colleges recently received an $80,000 grant for the college from a local foundation, 0 Reaches about 200 students a year has written over 30 articles and two books it tial Denclopment: stepped down as dean of the College of Business two years ago and took a Professor Ricks: 6 years old; 6 years with university teaches Labor Relations and Organi $20,000 pay cut teaches about 180 students per year; has written only two articles in the last six years due to administrative duties; very active in the community and serves on several 00. churity boards; wants a good raise to make up for loss of $2 Employee Relations and Compensation Management; just graduated with a PhD, will teach Professor Matthews: 28 years old, new hire-only four months with the university, teaches Matthews $97.000 plus provided a reduced teaching load for two years and a $6,000 per year about 110 students this year. To be competitive in the job market, the college paid Professor summer stipend none of the other faculty received this when they were first hired or subsequently , had two minor publications while a doctoral student but none since joining the college; wants a good raise to pay student loans and furnish a new residence. Professor Karas: 32 years old; 4 years with university; teaches International Business and Honors sections of Management Principles; teaches about 150 students per year, won Teacher of the Year Award this year, published 12 articles in last four years; has been interviewing for a new job at other universities and may leave if a good raise is not forthcoming. Professor Franks: 64 years old; 18 years with university, teaches Principles of Management and Human Resource Management ; teaches about 150 students per year; principal advisor for management-major students , has not written any articles during the last four years; plans on retiring within two-three years, and wants a good raise to enhance pension plan