Small State University is located in the eastern part of the United States and has an

enrollment of about 8,000 students. The College of Business has 40 full-time and more than 30

part-time faculty members. The college is divided into five departments: management,

marketing, finance and accounting, decision sciences, and information technology.

Faculty members in the management department are evaluated each year based on three

primary criteria: teaching, research, and service. Teaching performance is based on student

course evaluations over a two-year period. Service to the university, college, profession, and

community is also based on accomplishments over a two-year period. Research is based on the

number of journal articles published over a three-year period. Teaching and research are

considered more important than service to the university. In judging faculty performance, the

department chair evaluates each professor in terms of four standards: Far Exceeds Standards,

Exceeds Standards, Meets Standards, and Fails to Meet Standards. The results of this year’s

evaluations are shown on the next page.

This year the state has agreed to give raises totaling $17,400 to the management

department. Your task as department chair is to divide the $17,400 among the six faculty

members. Keep in mind that these raises will likely set a precedent for future years and that the

professors will view the raises as a signal for what behavior is valued and what is not.