There are many different theories when it comes to doling-out pay increases and bonuses. While most companies have a policy in regards to compensation, implementation of these policies over the long term leaves a lot of companies outside of the scope of their own guidelines. Some companies have a scale for pay increases based on measured performance, and the trending thought process is that this is how you get the most out of your employees. Unfortunately, when the policy is left in the hands of managers whom are having troubles in there departments, these discretionary decisions are sometimes made to help a manager look better instead of promoting the performance of the employee. There is an interesting article from Chuck Csizmare in HRM Today regarding policies and implementation, and the cost effectiveness of overall strategies. Read the article here.
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