You are struggling to complete the annual ranking of the twelve employees for whom you have reporting responsibility—a new requirement established by your company. There has been a lot of bad feeling and resentment about the new compensation system, and you are in a tough spot. If you use the maximum discretion you are allowed under the new system, you could give some people much bigger raises and bonuses and others much less. You know that you probably should do that, but you don’t want to offend and anger the employees who would get less. There is little chance that the rankings and their financial consequences will remain a secret.

You single out two people—the two who are obvious superstars. ...

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