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Allocating your merit increases the SMART way.

R T Miller, J L Campbell, T L Sherman

    The Journal of Nursing Administration
    |March 1, 1983
    PubMed
    Summary
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    The Systematic Merit Allocation Reward Technique offers a quantifiable method for impartial employee merit increases. This approach ensures fair rewards based on performance, fostering trust and motivation within the workforce.

    Area of Science:

    • Human Resources Management
    • Organizational Behavior
    • Compensation and Benefits

    Background:

    • Employee performance is widely considered a product of ability and motivation.
    • Financial compensation is a key motivator for employees.
    • Impartiality in reward distribution is crucial for employee morale and trust.

    Purpose of the Study:

    • To introduce and describe the Systematic Merit Allocation Reward Technique (SMART) for determining merit increases.
    • To provide a method for ensuring equitable and unbiased distribution of performance-based rewards.
    • To support human resource managers in implementing effective compensation strategies.

    Main Methods:

    • The article details a specific formula for merit increase allocation.
    • Successful implementation relies on robust job evaluation and performance appraisal systems.

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  • These systems must provide quantitative data for summarization.

    • Main Results:

    • The described formula has been successfully applied to a large employee group.
    • The technique facilitates quantitative summarization of performance data for reward allocation.
    • It provides a structured approach to linking performance with compensation.

    Conclusions:

    • The Systematic Merit Allocation Reward Technique is a viable method for managing merit increases.
    • Effective job evaluation and performance appraisal are prerequisites for its successful application.
    • This technique helps assure employees of impartial reward distribution, reinforcing the motivational impact of compensation.