Institute of Co-operative & Corporate Management, Research and Training

ANNUAL F!T "AR#AA$ %&'( ) *R +AM, R-L "LA. /L0-RA0-1

Read the case and given facts carefully and prepare a script for a role
play. If required, you can also craft new characters for supporting roles
in it within the limitation of the prescribed team composition.
The Situation
Amit and Kapoor work for Liberty in Gurgaon. Amit supervises a
research laboratory. Kapoor is the manager of research and
development. Amit and kapoor are alumni of the same college who have
work for Liberty for more than 6 years. Kapoor has been Amits boss for
2 years. ne of Amits team members has greatly impressed him. !his
team member is "umita "en. "umita was hired ## months ago. "he is
2$ years old and holds a masters degree in mechanical engineering.
%er entry level salary was &s. ' lakhs per year. Amit told her that( in
accordance with corporation policy( she would receive an initial
performance evaluation at 6 months and a comprehensive review after #
year. )ased on a performance record( "umita was told she could e*pect
a salary ad+ustment at time # year evaluation.
Amits evaluation of "umita after 6 months was very positive. Amit
commented on the long hours "umita was putting in( her co,operative
spirit( the fact that others in the lab en+oyed working with her( and that
she was making an immediate positive impact on the pro+ect assigned to
her. -ow that "umitas first anniversary is coming up( Amit has again
reviewed "umitas performance. Amit thinks "umita may be the best
new person the & . / group has ever hired. After only a year( Amit has
ranked "umita as a no. ' performer in the department of ##.
"alaries in the department vary greatly. Amit ( for instance( has a base
salary of &s. 0 lakhs( plus eligibility for a bonus that might add another
&s # lakhs to &s #.2 lakhs a year. !he salary range of the ## department
member is &s 2.1 lakhs to 6 lakhs. !he individual with the lowest salary
is recent hire with the bachelors degree in physics. !he two people
whom Amit has rated above "umita earned based salaries of &s 1 lakhs
and &s 1.2 lakhs. !hey are both '3 years old and have been at liberty
for ' and $ years respectively. !he median salary in Amits departments
is &s $.1 lakhs.
Amits Role
4ou want to give "umita a big raise. Although shes young( she has
proven to be an e*cellent addition to the department. 4ou dont want to
lose her. 5ore importantly( she knows in general what other people in
the department are earning( and she thinks shes underpaid. !he
company typically gives # year raises of 1 percent( although #3 percent
is not unusual and 23 to '3 percent increases have been approved on
occasion. 4oud like to get "umita as large an increase as Kapoor will
approve.
Kapoors Role
All your supervisors typically try to s6uee7e you for as much money as
they can for their people. 4ou understand this because you did the same
thing when you were a supervisor( but your boss wants to keep a lid on
costs. %e wants you to keep raises for recent hires generally in the 1 to 0
percent range. 8n fact( hes sent a memo to all managers and
supervisors saying this. %e also said that managers will be evaluated on
their ability to maintain budgetary control. %owever( your boss is also
concerned with e6uity and paying people what theyre worth. 4ou feel
assured that he will support any salary recommendation you make( as
long as it can be +ustified. 4our goal( consistent with cost reduction( is to
keep salary increases as low as possible.
You are required to script and enact the Negotiation
Amit has a meeting scheduled with Kapoor to discuss "umitas
performance review and salary ad+ustment.