Source | TLNT : By Dick Grote
In many smaller organizations there is no formal compensation policy. There may not even be an HR professional available to consult on merit increases and other pay issues.
In these companies, not only is the tragedy of the commons phenomenon more likely to arise, but managers are also more likely to encounter direct requests from their staff members for a raise since there is no specific policy regarding compensation. Without a policy, people assume that if they want a raise, the only way to get one is to ask for it.
Obviously, the best solution to this problem is to develop some kind of compensation policy so that matters of compensation are not handled in a one-off, spur-of-the-moment fashion.