The CEO would like to give a 1% raise to all employees with good reviews. One me
ID: 347771 • Letter: T
Question
The CEO would like to give a 1% raise to all employees with good reviews. One member of the board of directors said that he did not think that an increase was required simply because a person gets a good performance review. The CEO thinks that the review does not mean much if it does not result in a financial reward. These are lean times.Is keeping your job adequate reward for good performance during these lean times? Employee turnover has improved over the past few years. We have more new job applications than in many years. We want to respect our tight budget but at the same time treat our employees right. Based upon your readings this week, what factors should be considered in making these decisions?
Explanation / Answer
Factor should be considered while 1% raise to employee. - SWOT analysis provide clear vision about this decision,where strength & weakness for internal controllable factor can be observed, where as this this strength & weakness may develop certain opportunity as well threats which get develop by external environment by alteration in routine operation.
Strength - Employer point of view positive thing is that management is careful about employee. This raise may helps employee to develop good will about the management and improve the performance.
weakness- Employee point of view Negative thing is that employees expectation may increase over period of time.
Opportunity - This raise in increment attracts smart people to get assignment in this organization
Threats- Alteration in or 1 % raise needs to curtail other budget by 1% which may adversely affect the quality inputs for organization.
Thus as CEO express opinion about raise in 1% and if its possible without alteration of other input parameter then decision made is appropriates one.
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