Referring to question 3 above, one year, Ethans performance is truly spectacular, just as good as Jims had been in the previous case. Moreover, lets further assume that the company has no raise money available that year so no one, including Ethan, receives a merit raise. Given that Jim received a large raise for past performance, is this fair to Ethan?

a. It is not fair to Ethan and the company should look for the money to give Ethan a merit increase.

b. It is not fair to Ethan but the company cannot do anything about this because of the current fiscal situation of the company.