Bonuses and meritsΒΆ

Problem definitionΒΆ

A company pays a yearly bonus to employees based on the following indicators:

  1. Performance: Performance is evaluated by the direct manager using a quantitative method. The indicator is labelled as \(CM_{1}\) and measured in a scale from 1 to 5.

  2. Involvement: Involvement in social media, events, coaching and other voluntary activities. Involvement is measured by the human resource department using a quantitative method. The indicator is labelled as \(CM_{2}\) and measured in a scale from 1 to 5.

  3. Professional development: Professional development evaluates the accomplishment of training programs and courses suggested by the proximity manager. The indicator is labelled as \(CM_{3}\).

This year, the total score obtained among all employees is:

\(\sum (π‘ͺ𝑴_{𝟏}) = πŸπŸ”πŸπŸ“\) Total points in performance

\(\sum (π‘ͺ𝑴_{2}) = πŸπŸ’πŸŽπŸ—\) Total points in involvement

\(\sum (π‘ͺ𝑴_{3}) = πŸπŸ‘πŸ–πŸ•\) Total points in professional development

The company wants to calculate bonuses using a linear expression weighting the three The board established the following rules:

  • No employee should receive more than 5000€ in bonuses

  • The value of performance is twice the value of involvement and professional development

  • The total budget for bonuses this year is 1.5M€

Formulate an LPP that determines the optimal formula to calculate employee bonuses.

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