Human resource management practice I also available by michael armstrong

1 

Decide on the budget.

2 

Analyse data on pay settlements made by 

comparable organizations and rates of inflation.

3 

Conduct negotiations with trade unions as 

required.

4 

Calculate costs.

5 

Adjust the pay structure – by either 

increasing the pay brackets of each grade by 

the percentage general increase or by 

increasing pay reference points by the overall 

percentage and applying different increases 

to the upper or lower limits of the bracket, 

thus altering the shape of the structure.

6 

Inform employees.

Individual pay reviews

Individual  pay  reviews  determine  contingent  pay 

increases or bonuses. The e-reward 2009 survey of 

contingent  pay  found  that  the  average  size  of  the 

pay awards made by respondents was 3.3 per cent. 

Individual  awards  may  be  based  on  ratings,  an 

overall assessment that does not depend on ratings, 

or ranking, as discussed below.

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