HRM590:  Compensation Decisions

Your job now is to pull together all the information
you’ve completed so far in class and make salary decisions for your
team.  You have completed Cathy’s evaluation and received
assignment feedback.  This is the first year that you’ve made
salary decisions for this team.  Be sure to carefully review
the information provided.  You may simply type in the cells as
the text will automatically wrap.  You are
required to:

Cathy’s appraisal rating (she is last on the list);
your budget dollars, make your salary decisions based on
performance for your
team taking into consideration their Salary Grade and the Pay
Ranges identified
for the Salary Grades (fill in the Salary Decision Column);
your budget dollars award bonus money (fill in the Bonus Dollars
the green line areas, provide your substantiation and risk analysis
for the
salary decisions made; and
any items from this scenario in whole you may want to address.


ratings are 1 = Needs Improvement to 5 = Exceeds Expectations

Salary Budget:  $9,000

Bonus Budget:  $5,000


Designated Salary Pay Ranges

= $12,750 – 17,000

= 16,500 – 22,000

= 21,000 – 28,000

Employee Information


Salary Grade

Current Salary

% at Pay Scale*

Appraisal Rating

Salary Decision

Bonus Dollars

is a white male, 58YO, with 31 years’ service.  John is
a good worker and you like
him.  You don’t want to lose his skills
and experience as he’s been talking about retiring, but you
realize his
skills are too valuable to lose.







and Risk Analysis:
In an effort to retain John, I provided an 8% raise and a
bonus of $1,100.
Hiring someone to replace John would be difficult as he has
been with the
company for very long, has a lot of experience in his
position and is very
skilled. John has an excellent appraisal rating. We are
hoping this motivates
John to stay with us for a few more years.

is a Hispanic female, 42YO with 17 years’ service.
Alice is a good worker.  She has a lot of potential, which
her the higher rating.  She needs some
more skills and experience at this level though.

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