You are the HR Manager for a small company that produces and sells pretzels using the company’s secret recipe for pretzel dough. In addition to offering hand-rolled pretzels and pretzel sticks with several different dipping sauce choices, the company also offers pretzel bites and stuffed pretzels. In addition to selling its products online and in some specialty grocery stores, the company operates 8 kiosks in shopping malls in a large metropolitan area. Each kiosk has onsite baking equipment, a soft drink dispenser, ice maker, and humidity-controlled showcases. In addition to pretzels, each kiosk also offers soft drinks and bottled water.
You must make merit pay increase recommendations for 5 of the managers of each of the kiosks. These managers have just completed their first year with the company and are now to be considered for their first annual raise.
Each of the managers supervises a staff of 3 part-time employees on 2 different shifts. Each has at least an associate’s degree, and 1 (Bob Berghoff) has a bachelor’s degree. Their salary differences reflect varying levels of sales and management experience at the time of hire.
There are no formal company policies or guidelines regarding merit pay increases; however, you must stay within your merit increase budget of $12,000. Additionally, keep in mind that you may be setting precedents that will shape future expectations. Be prepared to justify your decisions to senior management if questioned.