Custom essays: A Management Dilemma

The objective of this paper is the reward recommendations for five employees of the Data Analysis Department of Dongfang Co. Ltd. Recommendations are based on working performance and other data analysis. According to case description it is necessary to utilize salary increase budget of 50,000 Yuan (7.5% of total payroll). At the same time, the inflation rate last year was 75. Budget cannot be exceeded.
A Management Dilemma
First, it is necessary to remember that rather high inflation rate (7%) is a sustainable reason to increase salary to every worker, just to compensate the growing prices.
Second, these recommendations are based on the working performance of the worker independently on his or her personal situation. The company can support its employee, but the initial aim of a firm is excellent business performance. In the small company every worker can contribute to the common success. It can be said that financial pressure in the family should be a good motivation to perform the working duties better.
Mr. Hong Lingjun thinks all the workers were properly paid in relation to their relative performance and seniority a year ago. So, the first recommendation is the following: to increase the salary of every worker on 7% to compensate the inflation
Name Present salary 7% Future salary
Sun Ronggen 150,000 yuan 10,500 yuan 160,500 yuan
Wang Qiang 130,000 yuan 9,100 yuan 139,100 yuan
Chen Xiaohua 120,000 yuan 8,400 yuan 128,400 yuan
Tan Min 160,000 yuan 11,200 yuan 171,200 yuan
Shen Ronghua 110,000 yuan 7,700 yuan 117,700 yuan
Total 670,000 yuan 46,900 yuan 716,900 yuan
As it seen, 7% salary increase for every worker requires only 46,900 yuan. Mr. Hong Lingjun can use 3,100 yuan for other company needs or for additional bonuses during the year.
However, another scenario of salary increase is possible. It includes the salary increase for every worker for partial inflation compensation and additional bonuses for the best performers. This difference will remind the workers that their performance is important, will become a reward for successful performers, and motivate other workers.
Name Present salary 7% Future salary
Sun Ronggen 150,000 yuan 7,000 yuan 157,000 yuan
Wang Qiang 130,000 yuan 12,000 yuan 142,000 yuan
Chen Xiaohua 120,000 yuan 17,000 yuan 137,000 yuan
Tan Min 160,000 yuan 7,000 yuan 167,000 yuan
Shen Ronghua 110,000 yuan 7,000 yuan 117,000 yuan
Total 670,000 yuan 50,000 yuan 720,000 yuan
As it seen, Chen Xiaohua, the best worker, gets the highest salary increase. Outstanding worker Wang Qiang is on the second place. Other workers also get the increase.
Both scenarios can be implemented in a small research firm. However, the seond scenario deals not only with inflation compensation but with motivation for excellent work.

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