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Smith lost the transfer opportunity to a better qualified candidate. Robert Trent was shocked when Smith's transfer was turned down. To further complicate mat- ters, Trent realized he would have to face Smith in May when it was time to discuss annual pay raises, that included both merit pay considerations and a cost- of-living adjustment. This would be even more difficult because Smith's performance and attitude had not improved since the January appraisal. If anything. they were worse. Trent just finished the May meeting with Smith by telling her the bad news: Based on both performance contend with the office social process pivoting around a weekly coffee group greatly influenced by Smith. It was not unusual for the former director of purchasing (who retired after 25 years of service) to attend these gatherings. Of course, Smith kept this group fully apprised of her continuing troubles with "this new, young purchasing director who is hardly dry behind the ears." CASE QUESTIONS 1. What are the facts Trent must consider now? 2. What avenues are now open to Trent? What does and attitude, she should not be recommended for a

Smith lost the transfer opportunity to a better qualified candidate. Robert Trent was shocked when Smith's transfer was turned down. To further complicate mat- ters, Trent realized he would have to face Smith in May when it was time to discuss annual pay raises, that included both merit pay considerations and a cost- of-living adjustment. This would be even more difficult because Smith's performance and attitude had not improved since the January appraisal. If anything. they were worse. Trent just finished the May meeting with Smith by telling her the bad news: Based on both performance contend with the office social process pivoting around a weekly coffee group greatly influenced by Smith. It was not unusual for the former director of purchasing (who retired after 25 years of service) to attend these gatherings. Of course, Smith kept this group fully apprised of her continuing troubles with "this new, young purchasing director who is hardly dry behind the ears." CASE QUESTIONS 1. What are the facts Trent must consider now? 2. What avenues are now open to Trent? What does and attitude, she should not be recommended for a

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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To what extent should employee appraisals be used in salary adjustments? Explain.

In April, much to Trent's dismay, it was announced tional pressure. As if this were not enough, he had to Smith lost the transfer opportunity to a better qualified contend with the office social process pivoting around a weckly coffee group greatly influenced by Smith. It was not unusual for the former director of purchasing (who retired after 25 years of service) to attend these gatherings. Of course, Smith kept this group fully apprised of her continuing troubles with "this new, young purchasing director who is hardly dry behind candidate. Robert Trent was shocked when Smith's transfer was turned down. To further complicate mat- ters, Trent realized he would have to face Smith in May when it was time to discuss annual pay raises, that included both merit pay considerations and a cost- of-living adjustment. This would be even more difficult because Smith's performance and attitude had not improved since the January appraisal. If anything, they were worse. Trent just finished the May meeting with Smith by telling her the bad news: Based on both performance and attitude, she should not be recommended for a the ears." CASE QUESTIONS cost-of-living or merit-pay increase for the new year beginning July 1. Smith, armed with the transfer eval- uation forms (completed and given to her in March), threatened to use all internal and external systems for organizational justice due her. As Trent pondered this dilemma, he fully recog- nized Smith's unique status within the university com- munity. She was the wife of a distinguished, tenured professor of business, and this situation provided addi- 1. What are the facts Trent must consider now? 2. What avenues are now open to Trent? What does this case say to you about the need for supervisors to act morally? 3. Do you believe some supervisors are untruthful where recommendations are concerned? Explain. 4. What three functions are salaries meant to perform? 5. To what extent should employee appraisals be used in salary adjustments? Explain. Source: Prepared by M. T. Bledsoe, Associate Professor of Business, Meredith College, Raleigh. North Carolina.
Transcribed Image Text:In April, much to Trent's dismay, it was announced tional pressure. As if this were not enough, he had to Smith lost the transfer opportunity to a better qualified contend with the office social process pivoting around a weckly coffee group greatly influenced by Smith. It was not unusual for the former director of purchasing (who retired after 25 years of service) to attend these gatherings. Of course, Smith kept this group fully apprised of her continuing troubles with "this new, young purchasing director who is hardly dry behind candidate. Robert Trent was shocked when Smith's transfer was turned down. To further complicate mat- ters, Trent realized he would have to face Smith in May when it was time to discuss annual pay raises, that included both merit pay considerations and a cost- of-living adjustment. This would be even more difficult because Smith's performance and attitude had not improved since the January appraisal. If anything, they were worse. Trent just finished the May meeting with Smith by telling her the bad news: Based on both performance and attitude, she should not be recommended for a the ears." CASE QUESTIONS cost-of-living or merit-pay increase for the new year beginning July 1. Smith, armed with the transfer eval- uation forms (completed and given to her in March), threatened to use all internal and external systems for organizational justice due her. As Trent pondered this dilemma, he fully recog- nized Smith's unique status within the university com- munity. She was the wife of a distinguished, tenured professor of business, and this situation provided addi- 1. What are the facts Trent must consider now? 2. What avenues are now open to Trent? What does this case say to you about the need for supervisors to act morally? 3. Do you believe some supervisors are untruthful where recommendations are concerned? Explain. 4. What three functions are salaries meant to perform? 5. To what extent should employee appraisals be used in salary adjustments? Explain. Source: Prepared by M. T. Bledsoe, Associate Professor of Business, Meredith College, Raleigh. North Carolina.
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