“Allocating Merit Raise” Case Analysis

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Abstract
Small State University is facing the dilemma of how to allocate the $17,400 that the state agreed to give to the management department. Each qualified candidate’s employment information is given to help determine the merit raise decision. Before the decision can finalize, research and analysis will be conducted. A case solution will include the implementation of management approval, budget recommendations, communication and essential steps of the new policy to the university, and fair distribution of merit raise. Keywords: merit raise, human resources, performance evaluation, merit raise procedures

Introduction
Small State University has 40 full-time and more than 30 part-time faculty members and enrolls about 8,000 students. There are five departments within the university, which include management, marketing, finance, and accounting, decision sciences, and information technology. The state agreed to give raises of $17,400 to the management department. The faculties in the department are evaluating yearly and their performance is based on teaching, research, and service. The department chairs utilize Far Exceeds Standards, Exceed Standards, Meets Standards, and Fails to Meet Standards are to use judge a faculty’s performance. At Small State, teaching and research are more important than service. A two year student course evaluation is used to measure a faculty’s teaching performance. The number of articles published over a three-year period is use to evaluate a faculty’s research performance. Lastly, service is based on the accomplishments of service to the university, college, profession, and community within a two-year period. As the department chair, it is my responsibility to divide the $17,400 fairly among the faculty members within the law. As an educational institution, merit pay is designed to encourage high effort by rewarding productivity. However, there are times that merit pay is overly awarded, which cause employees to think of it as an incentive. The decision of who deserves the merit pay can be a complication. There are six recipients who are equally qualified for the $17,400 that the state is willing to issue. First, it is important to look at the individual’s profile.

Policy
The annual faculty evaluation considers teach, research, and service to evaluate a faculty’s performance. To provide the department chair with the information, each eligible member is requiring submitting an Anticipated Activities Plan (See Appendix A) and an Annual Activities Report (See Appendix B) each year. Both reports are due in the month of June each year and will be kept in the member’s file. The department chair will consult members to insure that the scope of the effort and distribution among the criteria is appropriate. How it is determine is based on the nature of the member’s appointment and their anticipated activities report. Procedures

Evaluation
The department chair will conduct an evaluation by comparing the two reports. When comparing, the report is view as the goal of the plan. In addition, the department chair will use the student and peer evaluations. After the evaluation, each member will be given the opportunity to review the decision and have five days to appeal. After the time is due, the department chair will submit an official written evaluation to the Dean for determination. Determination

Merit raises are derived from the evaluations using the four category rating scale in each of the three performance areas. Rating Scale:
Far Exceeds Standards 3
Exceed Standards 2
Meets Standards 1
Fails to Meet Standards 0
For Small State University, there are a total of six faculties and an incremental merit of $17,400, which made the merit increment to $2,900. Each member will received as followed: |...
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