Week 4: Merit-Based Compensation and Employee Motivation Discussion
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Provide your own perspective on the following statement: An employee in a higher-level job position should receive a larger absolute merit increase compared to an employee in a lower-level job position. For example, a production manager of California Closets company has a current salary of $60,000. A production associate has a salary of $35,000. The manager level of job position is level 5, while the associate level job description is level 3.  Both production manager and production associate have shown a 4% merit increase in 2017. However, the total amounts of absolute merit increases they will receive are different – production manager will receive $2,400, and a production associate will be entitled to $1,400. Do you agree or disagree with such approaches? Explain why. What would be the impact of such an approach on both employees motivation?

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Click on Reply below to post an initial post to the discussion prompt by 11:59PM on Thursday of this week. Your Initial post must be at least 400 words and demonstrate course-related knowledge. Comment on at least two colleagues’ posts, by clicking on Reply below their posts, by Saturday,11:59 PM of this week. Response posts must be 150 words minimum, debate or substantiate the original post, and provide support for each reply post position.