| Course | MHRM 6601 Benefits, Compensation, and Resource Allocation |
|---|---|
| Week | Week 1 |
| Paper type | Discussion post |
| Length | About 500 words, 3 pages |
| Format | Discussion post, APA 7 citations |
| School | Walden University |
| Program | MS in Human Resource Management |
| Updated | October 2026 |
Free sample paper for MHRM 6601 Week 1
Week 1 Discussion: What Does Pay Buy?
What a Same-for-Everyone Raise Buys: Attendance From All, Extra Effort From Almost No One, and a Thin Return on Most of a Credit Union's Pay Budget
For three years running, Stone Arch Credit Union, the member-owned Twin Cities lender our course uses, has given every employee the same 3 percent raise. As I read it, the uniform increase at Stone Arch buys one thing reliably, continued membership, and almost nothing else. Everyone stays, or at least nobody leaves over the raise, but nobody has a reason to work differently because of it. This year's pool is about $497,000, 3.5 percent of a $14.2 million base payroll, and on the current pattern nearly all of it will buy the same thing again.
What the Raise Pays For
Gerhart and Rynes (2003) distinguish between pay that helps an organization attract and keep people and pay that changes what they do once they are there. A raise that is the same for everyone does the first job adequately. It keeps Stone Arch's pay from slipping behind inflation and signals that the credit union will not let wages erode. It does the second job poorly, because it is unrelated to anything an employee does. A teller who catches a fraudulent withdrawal and a teller who is routinely short at balancing receive the same percentage.
There is also a sorting cost. Gerhart and Fang (2014) argue that one of the main effects of pay tied to performance is who it attracts and keeps, not just how hard people work. A uniform raise sends no signal to strong performers that they will be rewarded for being strong, and over time some leave for employers that do send that signal. Shaw and Gupta (2007) found that the link between pay and performance shaped which employees quit: where pay and performance were weakly linked, good performers were more likely to leave.
Why It Persists
I do not think Stone Arch's leaders are naive. A uniform raise is simple, cannot be accused of favoritism and avoids the hard conversations that differentiated raises require. In a member-owned cooperative with a strong egalitarian culture, those are real advantages. It also costs nothing to administer beyond a payroll update. Managers at Stone Arch have also had little training in rating performance, so a sudden move to differentiated raises could produce ratings that are inconsistent from branch to branch, which would be worse than a uniform raise. The question is whether those advantages are worth most of the budget, and whether the rating problem can be fixed before any money depends on it.
What I Would Try
A middle path would keep a uniform base increase of perhaps 2 percent to protect against erosion and use the remaining 1.5 percent, about $213,000, for differentiated raises tied to clear criteria. That keeps the egalitarian signal while giving strong performers a reason to stay. My question for classmates: in organizations you know, did differentiated raises improve performance, or did they mostly create resentment, and what made the difference?
References
Gerhart, B., & Fang, M. (2014). Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), 41-52. https://doi.org/10.1016/j.hrmr.2013.08.010
Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, evidence, and strategic implications. Sage.
Shaw, J. D., & Gupta, N. (2007). Pay system characteristics and quit patterns of good, average, and poor performers. Personnel Psychology, 60(4), 903-928. https://doi.org/10.1111/j.1744-6570.2007.00095.x
Reading the MHRM 6601 Week 1 instructions
Week 1 asks what pay buys in an organization you know. Answer that question directly in your opening sentences, using a specific practice rather than pay in general. Separate the behaviors pay can purchase, such as joining, staying and performing, and say which ones the practice actually affects. Bring in research to support each claim. Explain fairly why the practice persists, since a post that ignores its advantages is easy to dismiss. Offer a modest alternative with an approximate cost. Finish by asking something classmates could answer from jobs they have held, and in replies test their practices the same way.
How the MHRM 6601 Week 1 example is put together
The post opens with the credit union's three years of uniform raises, its $497,000 pool and the one-sentence answer. A section draws on Gerhart and Rynes to distinguish attraction and retention from performance, with a teller example showing the raise ignores contribution. A paragraph adds Gerhart and Fang on sorting and Shaw and Gupta on who quits. A section explains the practice's appeal in a cooperative: simplicity, no favoritism, no hard conversations, and managers untrained in rating. A final section proposes splitting the pool and asks classmates whether differentiated raises helped or hurt where they worked, and why. Every figure in the post, from the payroll to the proposed split, can be checked against the course case.
MHRM 6601 Week 1 rubric: what earns full marks
Opening posts are judged on whether they answer the prompt's question precisely. A direct answer in the first sentences earns credit. Distinguishing what pay does, keeping people versus changing behavior, shows conceptual understanding. Research should support specific claims rather than decorate the post. Treating the practice fairly, including its advantages and the obstacles to change, demonstrates balanced judgment and is weighted well. A costed alternative shows practical thinking. The closing question should invite real answers. Posts that condemn a practice without explaining why organizations choose it, or that discuss pay theory without an example, receive less credit. A short, readable post with one clear argument usually outscores a longer one that covers several.
MHRM 6601 Week 1 help: mistakes that cost marks
Choose one pay practice where you work or have worked: an across-the-board raise, a bonus, a commission or a step schedule. Ask what it rewards. Does it reward joining, staying, performing or something else? Ask who it keeps and who it might push away. Then ask why the organization uses it, and write down at least two good reasons. Finally, sketch a small change and estimate roughly what it would cost. Many first posts argue for pay for performance without noticing why many employers avoid it. If you want help working out what your practice rewards, describe it to us and we can talk it through. Around 500 words is plenty for the main post.
Get a MHRM 6601 Week 1 example written to your instructions
Send the discussion prompt for Week 1, the participation rubric and any organization your section names; the post and its reply are built around that employer and back within 24 to 48 hours, first one free. Every figure in the sample is invented and labeled that way, and the credit union exists only for this example.
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MHRM 6601 Week 1 questions, answered
Where can I find a free MHRM 6601 Week 1 sample paper?
The uniform raise post appears in full below, free to read.
What does the MHRM 6601 Week 1 post say the raise buys?
Continued membership from everyone and extra effort from almost no one.
What sorting cost does it identify?
Strong performers receive no signal that strength is rewarded, and some leave for employers that send one.
Why does the practice persist?
It is simple, avoids favoritism and hard conversations, and managers have little training in rating performance.
What alternative does the post propose?
A 2 percent uniform base increase plus 1.5 percent for differentiated raises, about $213,000.