Question: Please distribute bonuses and explain why based on performance, age seniority etc. Thank you! This exercise is designed to help you understand the elements of


Please distribute bonuses and explain why based on performance, age seniority etc. Thank you!
This exercise is designed to help you understand the elements of Equity Theory and how people differ in their equity perceptions. Instructions: Four managers in a large national insurance company are described below. The national sales director of the company has given you the task of allocating $100,000 in bonus money to these four managers. It is entirely up to you to decide how to divide the money among these people. The only requirements are that all of the money must be distributed and that no two branch managers can receive the same amount. The names and information are presented in no particular order. You should assume that economic conditions, client demographics, and other external factors are very similar for these managers. Step 1: Working alone, you need to read information about the four managers. Then, fill in the amount they would allocate to each manager in the "Individual Decision" column. Step 2: Still working alone, you need to fill in the "Equity Inputs Form." First, in the "Input Factor" column, they list in order of importance the factors considered when allocating these bonus amounts (e.g., seniority, performance, age, etc.). The most important factor should be listed first and the least important last. Next, in the "Input Weight" column, you need to estimate the percentage weight that you assigned to this factor. The total of this column must add up to 100 percent. 4 Employees - Manager Profiles 1. Bob B. Bob has been in the insurance business for over 27 years and has spent the past 21 years with this company. A few years ago, Bob's branch typically made the largest contribution to regional profits. More recently, however, it has brought in few new accounts and is now well below average in terms of its contribution to the company. Turnover in the branch has been high and Bob doesn't have the same enthusiasm for the job as he once did. Bob is 56 years old and is married with five children. Three children are still living at home. Bob has a high school diploma as well as a certificate from a special course in insurance management. 2. Edward E. In the two years that Edward has been a branch manager, his unit has brought in several major accounts and now stands as one of the top units in the country. Edward is well respected by his employees. At 29, he is the youngest manager in the region and one of the youngest in the country. The regional director initially doubted the wisdom of giving Edward the position of branch manager because of his relatively young age and lack of experience in the insurance industry. Edward received an undergraduate business degree from a regional college and worked for five years as a sales representative before joining this company. Edward is single and has no children. 3. Lee L. Lee has been with this organization for seven years. The first two years were spent as a sales representative in the office that she now manages. According to the regional director, Lee rates about average as a branch manager. She earned an undergraduate degree in geography from a major university and worked as a sales representative for four years with another insurance company before joining this organization. Lee is 40 years old, divorced, and has no children. She is a very ambitious person but sometimes has problems working with her staff and other branch managers. 4. Sandy S. Sandy is 47 years old and has been a branch manager with this company for 17 years. Seven years ago, her branch made the lowest contribution to the region's profits, but this has steadily improved and is now slightly above average. Sandy seems to have a mediocre attitude toward her job but is well liked by her staff and other branch managers. Her experience in the insurance industry has been entirely with this organization. She previously worked in nonsales positions, and it is not clear how she became a branch manager without previous sales experience. Sandy is married and has three school-aged children. Several years ago, Sandy earned a diploma in business from a nearby community college by taking evening courses
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