Surveys increasingly show that merit pay is the most frequently used method of incentive compensation in organizations today. Research into this process is accelerating as well. However, until now little attention has been paid in the press to this vital topic.
In Merit Pay: Linking Pay Increases to Performance Ratings, Robert L.Heneman shows organizations how they can use theory and research to develop a new merit pay plan or to increase the effectiveness of existing plans. At least 80 percent of U.S. organizations now use merit pay, and successful practices at these organizations are used to illustrate points throughout the book. The author also draws from a variety of social science perspectives, including economics, industrial relations, management, and psychology in presenting an interdisciplinary perspective.
The author argues that merit pay research and practice need to be expanded to include situational factors that impact merit pay decisions, such as the type of organization, the goals of the compensation system, and the state of the economy. It is a critical book for individuals interested in advances in the compensation management field, and for practitioners responsible for merit pay decisions.
Robert Heneman is Associate Professor of Management and Human Resources in the College of Business at the Ohio State University. Dr.Heneman earned his Ph.D. in Labor and Industrial Relations from Michigan State University, his M.A. in Labor and Industrial Relations from the University of Illinois at Urbana-Champaign, and his B.A. in Economics and Psychology from Lake Forest College. Prior to joining the Ohio State University, he worked as a Human Resource Specialist for Pacific Gas and Electric Company.
1. Introduction and Overview
2. Pay for Performance : A Review of Theory and Research
3. Diagnosing Situational Characteristics
4. Measuring Performance
5. Establishing Pay Increases
6. Merit Pay Administration
7. Evaluating Merit Pay Outcomes