Part 1 (2pages)
Making Tough Decisions Listed below are your notes on the performance of four managers who work for you. Working alone, recommend salary increases for these four managers who have just completed their first year with the company and are now to be considered for their first annual raise. Keep in mind that you may be setting precedents and that you need to keep salary costs down while still rewarding them in a way that you maintain or increase the levels of motivation observed.
However, there are no formal company restrictions on the kind of raises you can give. Indicate the sizes of the raises that you would like to give each manager by writing percentages in the blanks and then draft a paragraph rationale for the raise and how you will structure rewards to increase or sustain the motivation level observed during their first year of employment. Assume all four managers entered the company at the same time and at the same base salary of 30,000$ for a total of 120,000$ in salary expense. Upper management has allowed a salary pool raise of 15 percent for the current year so you, as the manager, have a total of 18,000$ to give out as raises. Are there any variations or additions to this that you could offer beyond just a monetary reward? Think through this and be creative in ways you could reward those that you feel deserve more than what is available through the salary pool based on what you have focused on this week. Remember, the company needs the motivation to be a focus so productivity and employee engagement are high.
______% Abraham McGowan. Abe is not, as far as you can tell, a good performer. You have checked your view with others, and they do not feel that he is effective either. However, you happen to know he has one of the toughest workgroups to manage. His subordinates have low skill levels, and the work is dirty and hard. If you lose him, you are not sure whom you could find to replace him.
______% Ellie Ellesberg. Ellie has been very successful so far in the tasks she has undertaken. She needs the money more than many of the other people, and you are sure that they respect her because of the good performance.
_______% Fred Foster. Fred has turned out to be a very pleasant surprise to you. He has done an excellent job, and it is generally accepted among the others that he is one of the best people at the company. This surprised you because he is constantly frivolous and does not seem to care very much about money and promotion. Rationale:
_______% Greta Goslow. Your opinion is that Greta is just not cutting the mustard. Surprisingly enough, however, when you check to see how others feel about her, you discover that her work is very highly regarded. You also know that she badly needs a raise. She was recently widowed and is finding it extremely difficult to support her household and her young family of four. Rationale:
Part 2 (1 page)
This discussion is designed to help you critically think about the importance of internal resources as you decide on your diversification strategy.
Respond to this question:
• Does the RBV theory determine diversification targets? Explain and discuss, giving examples.
David, F. R., & David, F. R. (2015).Strategic management cases and concepts: A competitive advantage approach(15thed.). Pearson [Pearson Collections by Dr. Sameer Vaidya for Texas Wesleyan University].
Available from https://collections.pearsoned.com/#purchaseebook/132369739X
The Internal Assessment. For more information on A Strategic Management checkout this: https://www.britannica.com/topic/strategic-planning-organization
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