DECISION ANALYSIS:

FIRST STEP: Cost cutting and Fulfilling the necessities.

SECOND STEP: Room for a 2.5 to 3.0% pay increase for all
employees which was a little higher than inflation for that year.
It’s a small increase, but its a step in the right direction to keep
employees interested.

So now the question is how the

wages should be increased and
distributed?
CONSIDERATION TO REGAIN THE LOST ESSENCE

• COMPANY CULTURE:
Glue that allows people to work together.

• SOCIAL CONSIDERATION:
All people wish to be accepted and valued by important others while not
being exploited or harmed by powerful decision makers.
“Group-value model”

• ETHICAL CONSIDERATION:
Valuing the good work and encouragement to improve everyday

NEED OF A NEW HYBRID SYSTEM

WHICH REWARDS AND INCOURAGES TO WORK BETTER
 HYBRID SYSTEM
System based on GRADE APPRAISAL
• The typical 5-point scale awarding system may be employed
ANALOGY:
A = 5, B = 4, C = 3, D = 2, F = 1
Quarterly assessment and Annual Increment and promotions based
on performance of individual.

• Provide training for D and E grade holders