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• W244604461 abstract "CASE DESCRIPTION This short case focuses on the motivational and equity problems created by a student wage scale which is based on class standing rather than job demands or work performance. Fairness issues related to motivation, compensation, performance recognition and exception procedures are highlighted. The case has a difficulty level of three, and is best-suited for use in junior or senior-level courses in human resource management, organizational behavior or compensation. The case can be presented and discussed in about one class hour, and is expected to require about two hours of outside preparation by students. CASE SYNOPSIS This case chronicles the experience of Cindy, a student employee in a mid-western university. She is an excellent worker and receives a generous wage increase which seems to violate the school's student wage scale. Her supervisor followed the appropriate exception procedures, but several supervisors and students suspect favoritism or political muscle has been at work. They are upset because their requests for wage increases for excellent student workers have been denied. Friction develops between best friends when one receives a large wage increase while the other does not. Is the organization equitably compensating its students, or is the system inherently flawed and unfair? Student interest in this case should be high because the wage scale under scrutiny (which focuses more on class standing than work performance) is commonly used in many schools. INSTRUCTORS' NOTES The Overpaid Student case illustrates many of the problems created when wage systems are developed which focus on seniority rather than work performance or job demands. Ask your students to read the case and prepare answers to the discussion questions or assign them into small groups and have them analyze the case and make recommendations to Peoria University. As you discuss the case, try to keep the class focused on the motivational and managerial issues that must be resolved at Peoria University. Since issues of pay equity and fairness permeate the case, expect lively class debates and differences of opinion. DISCUSSION QUESTIONS 1. Evaluate the wage scale in use at Peoria University. What does a pay system like this encourage? The wage scale seems to primarily reward students for their academic progress. Peoria University hasn't developed job descriptions for students, and there isn't any evidence that the pay categories are related to needed skills or task difficulty. Students can theoretically be assigned to any job. Pay category is determined strictly by who you are, not what you can do. As the case illustrates, the starting pay level for an inexperienced senior is equal to or higher than the best performing freshman or sophomore. This implies that the designers of the pay system thought that academic maturity and experience were worth paying for, but should we assume that all freshmen and sophomores deserve less pay, regardless of their experience, job demands or work accomplishments? Most students at the university work in jobs which have little to do with their academic or educational pursuits. Why then should class standing be used to determine a student's wage category? The architects of this plan were not sensitive to the motivational implications of their pay system. They probably wanted a simple, uncomplicated pay scale which could be used by supervisors all across the campus. While this wage system is intuitive and easy to administer when students are first hired, it becomes problematic when students work hard and expect more recognition for their accomplishments. The pay range within each wage category does offer some incentive to work because students who perform well may get a raise if their supervisor recommends it. However, students are likely to receive some pay increases anyway, because over time they will automatically advance into a higher class, and thus qualify for a higher wage category. …" @default.
• W244604461 created "2016-06-24" @default.
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• W244604461 date "2004-07-01" @default.
• W244604461 modified "2023-09-23" @default.
• W244604461 title "The Overpaid student.(Instructor's Note)" @default.
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