Cypress Seminconductor According to Equity Case Study

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Merit wage increases are awarded to employees for their ability to meet stated goals.

4) Because employees define their own goals and deadlines, they may not be appropriately aligned with organizational goals and employees may set them too low just so they can meet them. Equity is part of the salary increase process, but comes only after allocation of merit. This could mean that serious inequities in pay go unresolved. Employees are rebelling against the system, as evidenced by overrides of dates and resistance to entering goals.

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5) Management should work more closely with employees to set goals and the notion of team goals should be incorporated into the system to foster team work. Equity should not take a back seat to merit; adjustments should be made to resolve inequities, particularly those that may be related to gender, race or age. Once employees have submitted goals, they should be frozen by the system so that employees can't cheat. Human resources should enforce the use of the goal setting….....

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