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Question IV
IV. Far East Bank (FEB) is one of the leading banks in the country. Its compensation and bonus packages are top of the industry. For the last 6 years, FEB had been providing the following bonuses across-the-board to all its employees:
(a)(a) 13th month pay;
(b)(b) 14th to 18th month pay;
(c)(c) Christmas basket worth P6,000;
(d)(d) Gift check worth P4,000; and
(e)(e) Productivity-based incentive ranging from a 20% to 40% increase in gross monthly salary for all employees who would receive an evaluation of "Excellent" for 3 straight quarters in the same year.
Because of its poor performance over-all, FEB decided to cut back on the bonuses this year and limited itself to the following:
(a) 13th month pay;
(b) 14th month pay;
(c) Christmas basket worth P4,000; and
(d) Gift check worth P2,000
Katrina, an employee of FEB, who had gotten a rating of "Excellent" for the last 3 quarters was looking forward to the bonuses plus the productivity incentive bonus. After learning that FEB had modified the bonus scheme, she objected. Is Katrina's objection justified? Explain. (3%)
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