For the past two years, I have been rated as “Exceeds Expectations” on my annual reviews. I work hard and am very good at what I do. My question regards annual raises. My supervisor gets a “bucket” of funds available to distribute to his team as he sees fit. Since he would run a mile rather than have a confrontation with anyone, he gives everyone the exact same raise — even those who are rated “Below Expectations.”
We all get the same raises
For the past two years, I have been rated as “Exceeds Expectations” on my annual reviews. I work hard and am very good at what I do. My question regards annual raises. My supervisor gets a “bucket” of funds available to distribute to his team as he sees fit. Since he would run a mile rather than have a confrontation with anyone, he gives everyone the exact same raise — even those who are rated “Below Expectations.”
Am I crazy for thinking my raise should be higher than people who are not performing up to expectations? When I asked him about it, he said he was giving everyone the same pay increase because he “didn’t want to make anyone feel bad.” Not surprisingly, I feel bad!
Please comment on this case and consider the following questions:
- What theories of motivation are involved in the situation?
It is Equity Theory, Please explain
- Is the manager acting reasonably or not? Why?
- Would it be better to continue the current policy or eliminate bonuses completely? Why?
- Have you had similar experiences in your company?
- Do you believe this policy is a requisite cause of interpersonal conflict within the company?
