Jim is given an extremely large raise because of his superb work record one year. As a result he is currently earning Php55,000 whereas others at the firm holding the same job are earning Php45,000. Everyone expects Jim to continue to excel and enhance the entire unit’s productivity. Unfortunately, Jim’s performance drops off after the first year and his performance is now just average. What should be done about his pay? Should it be reduced to reflect his current performance or should he continue to earn more than all of the others?

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