1995 MCM Problem A
MCM Problem B
Balaclava College, specializing in undergraduate education, has just
hired a new Provost. Problems
with faculty compensation at the college caused the forced resignation
of the former Provost so the new Provost needs to make the institution
of a fair and reasonable compensation system her first priority.
As a first step in this process, she has hired your team as
consultants to design a compensation system which reflects the following
circumstances and principles:
are four possible faculty ranks: Instructor,
Assistant Professor, Associate Professor and Professor.
Faculty with Ph.D. degrees are hired at the rank of Assistant
Professor. Faculty who are
working on a Ph.D. are hired at the rank of Instructor and promoted
automatically to Assistant Professor upon completion of their degrees.
Faculty may apply for promotion from Associate Professor to
Professor after serving at the rank of Associate for seven or more
years. The promotion
decisions are made by the Provost with recommendations from a faculty
committee and are not your concern.
Faculty salaries are for the 10 month period September through June.
Raises are always effective beginning in September.
The total amount of money available for raises varies from year
to year and is generally not known until March for the following year.
starting salary this year for an Instructor with no prior teaching
experience was $27,000 and for an Assistant Professor was $32,000.
Faculty can receive credit, upon hire, for as much as seven years
of teaching experience at other institutions.
design a new pay system without cost-of-living increases.
Then incorporate cost-of-living increases.
The final piece of this project is to design a transition process
for existing faculty which will move all salaries towards your system
without cutting anyone's salary. The
existing faculty salaries, ranks and year of service, are in
Discuss any refinements you think would improve your system.
The Provost has asked for a detailed pay system plan that she can use for implementation as well as a short executive summary in clear language outlining the model, its assumptions, its strengths and weaknesses and the expected results which she can present to the Board and the faculty.