Dr. Jeff Foreman, professor and head of marketing at Carroll State University, had just left a meeting with the Dean of the College and other department chairs for future programs to increase wages. Since the wage increase was small in recent years, Foreman was very pleased that there will be four percent merit money this year, in addition to the previously announced two per cent on-the-board (ATB) increase. ATB increase will be effective in July, and the credit card will be implemented in January next year. At the meeting, the dean of the college said that the chairs of merit pay policies can be changed in order to reward the most productive faculty. He said that at a recent meeting with the rector, the idea of a more "aggressive" approach to rewarding the most effective teachers are discussed. This approach, he was nominated, will retain his university is the most productive and the most mobile of the teaching staff - those who had the talent to really promote the program in the school. Following discussions at the meeting of the department was animated, and they expressed different views on whether the proposed changes to the merit-pay policies. After the meeting, the dean asked each of the chairs to study the proposal and make a recommendation to the compensation plan with justification, noting that the group would meet again to make a political decision for college. Back in his office, Professor Forman reviews existing policies to raise wages, salary information on its faculty, and their performance ratings for the last three years. He thought about the philosophy underlying the aggressive approach to compensation and rewarding effects of only the best performers. But he also wanted to see the actual impact of the proposed changes to the salaries of their teachers. What would that do to wage differentials? How this will affect the motivation of the faculty? "Hide
by Thomas R. Miller Source: North American Case Research Association (NACRA) 7 pages. Publication Date: January 15, 2009. Prod. #: NA0032-PDF-ENG
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