Journal of Organizational Behavior

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Volume 8 Issue 1 (January 1987), Pages fmi-fmi, 1-93

Salary increment allocation and individual differences (pages 37-43)

Abstract

Sixty‐seven MBA students were asked to provide salary increment recommendations for a set of employees. Contrary to past evidence of a preference for an adjustment system, the majority of respondents utilized an absolute merit system for determining salary increases (wherein employees of equal merit were assigned raises of equal dollar magnitude independent of initial base salary). Further analysis suggested the importance of an individual's value system in the decision to employ a particular approach to allocating raises.

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