INCIDENT: MERIT INCREASES The task for this assignment is to develop a fair procedure that will be used to determine merit raises and then decide the dollar raise to be given to each professor. Be sure to provide not only the dollar amount of the raises, but also fully explain your process for determining raises and the rationale behind them. 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 years evaluations are shown in Exhibit 4.3. Exhibit 4.3. Department Chairs Rating of Job Performance Professor Current Salary Teaching Research Service Houseman $92,000 Exceeds Exceeds Meets Jones $116,000 Exceeds Far Exceeds Exceeds Ricks $135,000 Meets Meets Far Exceeds Matthews $97,000 New Hire New Hire New Hire Karas $100,000 Far Exceeds Exceeds Meets Franks $90,000 Meets Fails to Meet Exceeds 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 given over 30 presentations since joining the college; wants a good raise to catch up with others. Professor Jones: 49 years old; 10 years with the university; teaches Human Resource Management and Organizational Behavior; stepped down as department chair three years ago; teaches about 200 students a year; has written over 30 articles and two books since joining the college; recently received an $80,000 grant for the college from a local foundation, and wants a good raise as a reward for obtaining the grant. Professor Ricks: 61 years old; 6 years with university; teaches Labor Relations and Organizational Development; stepped down as dean of the College of Business two years ago and took a $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 charity boards; wants a good raise to make up for loss of $20,000. Professor Matthews: 28 years old; new hireonly four months with the university; teaches Employee Relations and Compensation Management; just graduated with a PhD; will teach about 110 students this year. To be competitive in the job market, the college paid Professor Matthews $97,000 plus provided a reduced teaching load for two years and a $6,000 per year 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 twothree years, and wants a good raise to enhance pension plan.

When trying to dertermine the best way to split up this bonus I decided to weight each critiea first. Since teaching and research are more important to the college than service, I decided to weigh teaching and research each 40% and service 20%. After that I would take these percentages and multiply them with (far exceeds standards=4, exceeds=3, meets=2, fails to meet=1).

Houseman- (40% x 3) + (40% x 3) + (20% x 2) = 2.8

Jones- (40% x 3) + (40% x 4) + (20% x 3) = 3.4

Ricks- (40% x 2) + (40% x 2) + (20% x 4)= 2.4

Matthews- New Hire

Karas- (40% x 4) + (40% x 3) + (20% x 2)= 3.2

Franks- (40% x 2) + (40% x 1) + (20% x 3) = 1.8

From here is how I deiceded the ranking of each professor: Jones, Karas, Houseman, Ricks, Franks, Matthews

To find the precentage rate of each employee and how to determine how much of the bonus each person got was to divide each individuals merit score by the sum of all the scores added up. For example House man would be - 2.8/ (2.8+3.4+2.4+3.2+1.8) = .2058 or 20.6%

Using this method is how I got these percentages, then I took each percentage and multiplied it by 6300 to determine the dollar amount for each individual.

Jones 25% - $1575 salary increase

Karas- 23.5% - $1480.50 salary increase

Houseman- 20.6% -$1,297.80 salary increase

Ricks- 17.6% -$1,108.80 salary increase

Franks- 13.3% -$837.90 salary increase

Matthews 0% -No salary increase

I decided to not give Matthews any part of the raise because he has only been working at the college for four months and got benefits that the other professors did not get when hired. Karas won teacher of the year award and deserves a good raise for the hard work as well as meeting and exceeding all critera. Although Franks has been with this college for 18 years, since he failed to meet standards on research his raise got cut on that. Jones exceeded and far exceeded all critea which is why he landed the top raise. This is the fairest way I could come up with to give each individual what they earned throughout the years.