Question: Examine data on spreadsheet Copy data sheet and add additional columns: Compa-ratio % increase $ increase New Salaries Determine: What is the dollar amount of
Examine data on spreadsheet
Copy data sheet and add additional columns:
Compa-ratio
% increase
$ increase
New Salaries
Determine:
What is the dollar amount of the total merit pool for this incentive bonus?
Who should receive incentive bonuses and why?
How much should each qualifying individual receive? (display percentages anddollar amount)
What are the current compa-ratios for each individual?
Calculate the 3% merit budget (merit pool is determined by computing 3% of the total salary of your team).
Compute each employees compa-ratio (current salary divided by the midpoint). This value represents the relative position of the employees current salary to the market (low, equal, high).
Determine how best to distribute the merit pool based on the principle of pay for performance. Merit increases should be expressed both in dollars and as a percent of the employees current base pay.
Compute the new salary (merit increase + current salary).
Compute the participation rate for the department (# of employees receiving merit increases divided by the total # of employees in the department). This value represents the % of employee in the department receiving an increase. Too high a percent infers that there is little performance/reward differentiation; too low a percent infers possibly an unrealistic performance/reward threshold. Both ends of the participation rate continuum could affect morale, performance, and result in turnover.
Prepare a statement to each of the 12 employees that affirms your performance/award decision and reference data from the performance evaluation.
| Employee | Employee # | Wage Rate | Annual $ | Total Appraisal | Knowledge | Initiative | Teamwork | Quality | Quantity | Customer Svc |
| Chaney, Ronald | 12 | $ 12.25 | $ 25,480.00 | 3.750 | 3.000 | 4.000 | 3.500 | 4.000 | 4 | 4 |
| Soto, Sandra | 11 | $ 12.50 | $ 26,000.00 | 3.417 | 3.500 | 3.000 | 4.000 | 4.000 | 3 | 3 |
| Bush, Gary | 10 | $ 13.25 | $ 27,560.00 | 2.667 | 3.000 | 2.000 | 3.000 | 3.000 | 2 | 3 |
| Clinton, Marilyn | 9 | $ 13.00 | $ 27,040.00 | 2.833 | 3.000 | 3.000 | 2.000 | 3.000 | 3 | 3 |
| Perry, Rhonda | 8 | $ 13.50 | $ 28,080.00 | 3.500 | 4.000 | 3.500 | 4.000 | 3.500 | 3 | 3 |
| Gibson, Christine | 7 | $ 13.75 | $ 28,600.00 | 3.167 | 4.000 | 3.000 | 3.000 | 3.000 | 3 | 3 |
| Ahmed, Janel | 6 | $ 14.00 | $ 29,120.00 | 3.833 | 3.000 | 4.000 | 3.000 | 4.000 | 4 | 5 |
| Lozano, Tina | 5 | $ 14.25 | $ 29,640.00 | 4.167 | 5.000 | 4.500 | 4.000 | 4.000 | 3.5 | 4 |
| Porter, Henry | 4 | $ 14.50 | $ 30,160.00 | 3.333 | 4.000 | 4.000 | 3.000 | 3.000 | 3 | 3 |
| Blanco, Maria | 3 | $ 14.75 | $ 30,680.00 | 2.667 | 3.000 | 3.000 | 2.000 | 2.000 | 3 | 3 |
| Linares, Patricia | 2 | $ 15.00 | $ 31,200.00 | 3.167 | 3.500 | 3.000 | 3.500 | 3.000 | 3 | 3 |
| Elsbery, Christine | 1 | $ 15.50 | $ 32,240.00 | 3.000 | 3.000 | 3.000 | 3.000 | 3.000 | 3 | 3 |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help