Case #419.3

Merit Pay at the Department of Health (Abridged)

Publication Date: January 01, 1981
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Abstract:
In this disguised case, John Corbin arrives at the Division of Departmental Services in the Department of Health to take on the job of deputy director. At the same time, the department has directed its senior management to implement a merit pay system for its managerial and supervisory personnel. Corbin decides to institute a merit pay system and use it as "the fastest way to get a handle on the organization." A year later, Hal Carter, the head of DOD's contracting office, contends that the performance standards do not measure his effectiveness on the job. After months of argument brings them to an impasse, Corbin must decide whether to change the system or encourage Carter to move on.

Learning Objective:
This case is intended to illustrate the kinds of problems that arise when the managerial styles and objectives of senior managers conflict with those of subordinates. The case may also serve as a vehicle for discussing the advantages and disadvantages of performance appraisal systems. The accompanying exercise involves a role play of a meeting between Corbin and Carter. By role-playing manager-employee interaction, participants engage in activity that is fundamental to their professional lives. Though the exercise derives from a case context, it takes participants beyond case analysis and discussions toward direct experience through simulation.

Other Details

Case Author:
Esther Scott
Faculty Lead:
Stephanie Gould
Pages (incl. exhibits):
5
Setting:
Fictional
Language:
English