1. What is the correlation between pay and performance? Are pay and performance strongly correlated? How do you know?
2. What is the compa-ratio? What does the ratio tell you about the distribution of pay in the department?
3. What is the performance ratio? What does this performance ratio say about the distribution of employees in the department? Are “leniency” and “strictness” rating errors likely to be a problem at Xapiva?
4. Based upon the analyses conducted, is Xapiva achieving a fair distribution of performance and compensation? What is your evidence to support your position?
Did the merit increases affect the correlation between pay and performance? Before conducting this analysis, make sure you write down the current correlation. You will need this at the end of this question.
Has the correlation changed? What do your results suggest about the relationship between pay and performance after the merit increases were applied? NOTE: Reset the values to current pay.
5. Did the merit increases affect the compa-ratio? You must change two formulas in the compa-ratio section by changing the values of Total Pay and the Midpoint to reflect the New Pay rather than current pay. What is the new compa-ratio? What do your results indicate about the distribution of NEW PAY?
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