Instruction
Tough economic times have had an impact at Diverse Prints, a graphic design and production company. Diverse works with medium-sized companies to design and produce marketing materials. As companies cut their advertising budgets in response to an unstable economy, the workload at Diverse also declines. Ann Lewis, the companys CEO, is optimistic about the future, but concerned about retaining their talented staff of designers and support staff.
An important part of employee management at Diverse is their annual performance appraisal process and subsequent merit pay increases. Diverse takes the employee review process seriously and provides its employees with constructive feedback on their performance. The merit pay program has been a useful tool in recognizing superior performance and talented designers have enjoyed generous pay increases over the years. The process clearly differentiates levels of performance with those employees with top reviews earning pay increases as high as 15% of their annual pay. Conversely, employees with average or poor performance earn little or only small merit pay increases.
A generous merit pay budget has allowed for such distinctions to be made. However, this year the merit pay budget is relatively small. Due to budget cuts across the organization, the available merit pay budget is only 2% of payroll. Faced with the limited budget, Sam Hiram, the Director of Human Resources, does not think that merit pay increases should be given this year. Instead, he is recommending that the company spread the funds out and give all employees a small pay increase to help adjust to increases in the cost of living.
While unsure if the company will turn around, Ann remains hopeful. The company has a strong reputation for creativity and reasonably priced services and Ann is convinced that as the economy improves, business will return. As such, she insists on still giving the merit increases. Sam argues that without the capability of giving merit pay increases that differentiate poor from superior performance, the increases will not have the desired effects. Sam suggests still conducting the performance appraisals, but keeping the pay increases separate. Ann argues that the employees understand the troubled times, and feels that even with a small difference in the increases, the merit pay program is still useful. Further, she suggests that the current slowdown is most likely a temporary problem and next year they will resume their typical increases. Despite their conflicting views, the two must now come to an agreement on how to handle this years performance appraisals.
Do you think the company should offer merit pay increases? Why or why not?
If the company chooses not to offer the merit pay increases, how should they approach explaining the decision to the employees?
I want someone to answer the questions with two diffrent copies with no copy from the internet each one must be 300 words