Clear Logic and Fuzzy Guidance: A Policy Capturing Study of Merit Raise Decisions

Abstract

Policy capturing was used to determine cue weights when a merit raise committee implemented an imprecise directive. Evaluations by three raters of 36 faculty were regressed on actual raises. The committee was consistent in their evaluations, but the policy was similar to that obtained by counting activities in faculty annual reports. This study has implications for organizations that motivate employees through merit pay decisions in ways that are inconsistent with their mission and business objectives.