CASE 10 The Case of the Missing Raise Prepared by John R. Schermerhorn, Jr., Ohio University It was late February, and M

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CASE 10 The Case of the Missing Raise Prepared by John R.
Schermerhorn, Jr., Ohio University It was late February, and Marsha
Lloyd had just completed an important long-distance telephone call
with Professor Fred Massie, head of the Department of Management at
Central University. During the conversation Marsha accepted an
offer to move from her present position at Private University,
located in the East, to Central in the Midwest as an assistant
professor. Marsha and her husband, John, then shared the following
thoughts. Marsha: “Well, it's final.” John: “It's been a difficult
decision, but I know it will work out for the best.” Marsha: “Yes,
however, we are leaving many things we like here.” John: “I know,
but remember, Professor Massie is someone you respect a great deal,
and he is offering you a challenge to come and introduce new
courses at Central. Besides, he will surely be a pleasure to work
for.” Marsha: “John we're young, eager, and a little adventurous.
There's no reason we shouldn't go.” John: “We're going, dear.”
Marsha Lloyd began the fall semester eagerly. The points discussed
in her earlier conversations with Fred were now real challenges,
and she was teaching new undergraduate and graduate courses in
Central's curriculum. Overall, the transition to Central had been
pleasant. The nine faculty members were warm in welcoming her, and
Marsha felt it would be good working with them. She also felt
comfortable with the performance standards that appeared to exist
in the department. Although it was certainly not a “publish or
perish” situation, Fred had indicated during the recruiting process
that research and publications would be given increasing weight
along with teaching and service in future departmental decisions.
This was consistent with Marsha's personal belief that a professor
should live up to each of these responsibilities. Although there
was some conflict evidence among the faculty over what weighting
and standards should apply to these performance areas, she sensed
some consensus that the multiple responsibilities should be
respected. It was April, and spring vacation time. Marsha was
sitting at home reflecting upon her experiences to date at Central.
She was pleased. Both she and John had adjusted very well to
Midwestern life. Although there were things they both missed from
their prior location, she was in an interesting new job and they
found the rural environment of Central very satisfying. Marsha had
also received positive student feedback on her fall semester
courses, had presented two papers at a recent professional meeting,
and had just been informed that two of her papers would be
published by a journal. This was a good record, and she felt
satisfied. She had been working hard, and it was paying off. The
spring semester ended, and Marsha was preoccupied. It was time, she
thought, for an end-of-the-year performance review by Fred Massie.
This anticipation had been stimulated, in part, by a recent meeting
of the College faculty in which the dean indicated that a 7 percent
pay raise pool was now available for the coming year. He was
encouraging department chairpersons to distribute this money
differentially based on performance merit. Marsha had listened
closely to the dean and liked what she heard. She felt this meant
that Central was really trying to establish a performance-oriented
reward system. Such a system was consistent with her personal
philosophy and, indeed, she taught such reasoning in her courses.
Throughout May, Marsha kept expecting to have a conversation with
Fred Massie on these topics. One day, the following memo appeared
in her faculty mailbox. MEMORANDUM TO: Fellow Faculty FROM: Fred
RE: Raises for Next Year The Dean has been most open about the
finances of the College as evidenced by his detail and candor
regarding the budget at the last faculty meeting. Consistent with
that philosophy I want to provide a perspective on raises and
clarify a point or two. The actual dollars available to our
department exclusive of the chairman total 7.03 percent. In
allocating those funds I have attempted to reward people on the
basis of their contribution to the life of the Department and the
University, as well as professional growth and development. In
addition, it was essential this year to adjust a couple of
inequities which had developed over a period of time. The
distribution of increments was the following: 5 percent or less 3
5+ percent to 7 percent 2 7+ percent to 9 percent 3 More than 9
percent 2 Marsha read the memo with mixed emotions. Initially, she
was upset that Fred had obviously made the pay raise decisions
without having spoken first with her about her performance. Still,
she felt good because she was sure to be one of those receiving a
9+ percent increase. “Now,” she mused to herself, “it will be good
to sit down with Fred and discuss not only this past year's
efforts, but my plans for next year's as well.” Marsha was
disappointed when Fred did not contact her for such a discussion.
Furthermore, she found herself frequently involved in informal
conversations with other faculty members who were speculating over
who received the various pay increments. One day Carla Block, a
faculty colleague, came into Marsha's office and said she had asked
Fred about Marsha's raise. She said that Marsha received a 7+
percent increase and also learned that the two 9+ percent increases
had been given to senior faculty members. Marsha was incredulous.
“It can't be,” she thought. “I was a top performer this past year.
My teaching and publications records are strong, and I feel I've
been a positive force in the department.” She felt Carla could be
mistaken and waited to talk the matter out with Fred. A few days
later another colleague reported to Marsha the results of a similar
conversation with Fred. This time Marsha exploded internally. She
felt she deserved just reward. The next day Marsha received a
computerized notice on her pay increment from the Accounting
Office. Her raise was 7.2 percent. That night, after airing her
feelings with John, Marsha telephoned Fred at home and arranged to
meet with him the next day. Fred Massie knocked on the door to
Marsha's office and entered. The greetings were cordial. Marsha
began the conversation. “Fred, we've always been frank with one
another, and now I'm concerned about my raise,” she said. “I
thought I had a good year, but I understand that I've received just
an average raise.” Fred Massie was a person who talked openly, and
Marsha could trust him. He responded to Marsha in this way. “Yes,
Marsha, you are a top performer. I feel you have made great
contributions to the department. The two nine-plus percent raises
went to correct ‘inequities’ that had built up over a period of
time for two senior people. I felt that since the money was
available this year, I had a responsibility to make the
adjustments. If we don't consider them, you received one of the
three top raises, and I consider any percentage differences between
these three very superficial. I suppose I could have been more
discriminating at the lower end of the distribution, but I can't
give zero increments. I know you had a good year. It's what I
expected when I hired you. You haven't let me down. From your
perspective I know you feel you earned an ‘A,’ and I agree. I gave
you a ‘B-plus.’ I hope you understand why.” Marsha sympathized with
Fred's logic and felt good having spoken with him. Although she
wasn't happy, she understood Fred's position. Her final comment to
Fred was this: “You know, it's not the absolute dollar value of the
raise that hurts. It's the sense of letdown. Recently, for example,
I turned down an extensive consulting job that would have paid far
more than the missing raise. I did so because I felt it would
require too many days away from the office. I'm not sure my
colleagues would make that choice.” In the course of a casual
summer conversation, Carla mentioned to Marsha that she had heard
two of the faculty who had received 4+ percent raises had
complained to Fred and the dean. After lodging the complaints, they
had received additional salary increments. “Oh, great,” Marsha
responded to herself, “I thought I had put this thing to rest.”
About three weeks later, Marsha, Fred, Carla, and another colleague
were in a meeting with the dean. Although the meeting was on a
separate matter, something was said which implied that Carla had
also received an additional pay increment. Marsha confronted the
dean and learned that this was the case. Carla had protested to
Fred and the dean, and they had raised her pay on the justification
that an historical salary inequity had been overlooked. Fred was
visibly uncomfortable as a discussion ensued on how salary
increments should be awarded and what had transpired in the
department on this matter. Fred eventually excused himself to
attend another meeting. Marsha and the others continued to discuss
the matter with the dean, and the conversation became increasingly
heated. Finally, they each rose to terminate the meeting. Marsha
felt compelled to say one more thing: “It's not that I'm not making
enough money,” she said to the dean, “but I just don't feel I
received my fair share, especially in terms of your own stated
policy of rewarding faculty on the basis of performance merit.”
With that remark, Marsha left the meeting. As she walked down the
hall to her office, she said to herself, “Next year there will be
no turning down consulting jobs because of a misguided sense of
departmental responsibility.”
REVIEW QUESTIONS
1. What is Marsha’s conflict management style and how
has it influenced events in this case? What were Marsha’s goals and
what conflict management style would have worked best in helping
her achieve them?
2. What is Fred’s conflict management style and how has
it influenced events in this case?
3. Once Marsha found out what her raise was to be, how
could she have used the notion and elements of distributive
negotiation to create a situation where Fred would make a raise
adjustment that was favorable and motivating for her?