A COMPUTER-BASED HEURISTIC METHODOLOGY FOR THE DEVELOPMENT OF SALARY ADMINISTRATION GUIDELINES

This paper discusses the development of a heuristic methodology to gen erate salary merit increases and to schedule these salary actions alon g a specified planning horizon. The heuristic approach consists of two procedures, referred to as Heuristic Procedure 1 and Heuristic Proced ure 2. For a group of executive personnel, Heuristic Procedure 1 yield s salary increase percentages, in such a way that external consistency is maximized without violating internal consistency conditions. Heuri stic Procedure 2 establishes the time intervals between salary increas es for each eligible employee. A comparison is performed, in terms of computer execution time and optimality of solutions, between the heuri stic methodology and a mathematical programming approach developed for formulating salary administration guidelines. Computational results a re reported for a number of sample problems. Copyright (C) 1996 Elsevi er Science Ltd