Question

You are the manager of a grocery store responsible for yearly cashier evaluations. You have a budget for raises and use a 3-level rating system. Explain how you would allocate raises within your budget, considering performance ratings.

Answer 1

To allocate raises within a budget, use a 3-level rating system and assign a percentage increase to each level based on performance. Allocate the raises accordingly to reward higher performing individuals.

Step-by-step explanation:

In order to allocate raises within your budget, you can use the 3-level rating system to determine the percentage increase for each performance rating. For example, you can assign level 1 as 'needs improvement' and give a 2% raise, level 2 as 'meets expectations' and give a 4% raise, and level 3 as 'exceeds expectations' and give a 6% raise.

Let's say your budget allows for a total of $10,000 in raises. If you have 10 cashiers and each cashier has a rating of level 1, you can allocate $200 to each cashier. If you have 20 cashiers and half of them have a rating of level 2 and the other half have a rating of level 3, you can allocate $800 to the level 2 cashiers and $1,200 to the level 3 cashiers.

By using this method, you can ensure that the higher performing cashiers are rewarded with a larger raise while staying within your budget.