The Proposed Merit Pay Program: Should the Winners Take All? Harvard Case Solution & Analysis

Dr. Jeff Foreman, the Professor and Chair of Marketing Department at Carroll State University, had currently left a gathering with the Dean of the Faculty and other department chairs about the forthcoming salary increase plan. Since pay increases had been small lately, Foreman was quite pleased that there would be four percent worthiness cash this year, along with the previously announced two percent across-the-board (ATB) increase. The ATB raise would be effective in July, the following January and the merit pay would be executed. He said that at a current convention with the Provost, the notion of a more "competitive" strategy to rewarding top-performing faculty members was discussed.

This strategy, it was progressed, would help the University keep its most mobile and most productive faculty members - those who had the programs of the school to really advance. Following discussion at the chairs' meeting was animated, and they expressed a number of opinions about the advisability of the planned changes in the merit pay policy. As the meeting ended, the Dean asked each of the chairs make a recommendation about the pay strategy with a justification, noting that the group would meet again to make a policy choice for the School and to analyze the proposal. Back in his office, Professor Foreman reviewed their performance ratings for the last three years, wages information on his faculty, and the existing policy on salary increases. He thought about the philosophy underlying the competitive way of settlement and the implications of rewarding only the top performers. But he also desired to have a look at the genuine impact of the proposed change on the salaries of his faculty members. What would it do to salary differentials? How would it impact faculty motivation?

The Proposed Merit Pay Program Should the Winners Take All Case Study Solution

PUBLICATION DATE: January 15, 2009 PRODUCT #: NA0032-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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