Justifying a Fair Bonus Distribution
As a manager, you must decide how to distribute a $10,000 bonus pool between two employees, Alex and Ben, for their work on a successful project. Both employees worked equally hard and were essential to the project's success. Alex's role allowed for a direct measurement of their contribution, which accounted for 90% of the project's revenue. Ben's contribution in a support role was equally critical, but its direct financial impact cannot be quantified. Both of the following distributions are 'efficient' as the entire bonus pool is used. Which distribution would you implement? Justify your choice by evaluating the fairness of each option.
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Introduction to Microeconomics Course
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CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
Evaluation in Bloom's Taxonomy
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Justifying a Fair Bonus Distribution