"Paired Comparisons and Personal Compensation: A Computer-Aided Approac" by H. D. Simpkin

Date of Award

4-1983

Document Type

Thesis

Degree Name

Master of Science, Management

Department

Business

First Advisor

Russell Johnson

Second Advisor

Patrick Land

Abstract

H.D. Simpkin's Paired Comparisons and Personnel Compensation: A Computer-Aided Approach explores the use of the paired comparison method in employee performance evaluation and salary determination. The study examines the challenges human resource managers face in linking salary increases with performance assessments, emphasizing the limitations of traditional ranking and rating systems. The paired comparison method, which systematically compares employees against each other in pairs, is proposed as a more reliable and objective alternative.

The thesis details a study conducted with laboratory technicians, where supervisors used both conventional ranking methods and a computerized paired comparison system. Statistical analysis demonstrated a high correlation between the two ranking methods, validating the reliability of paired comparisons. The introduction of a digital computer to automate the process significantly reduced the time required for evaluations, improved consistency, and minimized common rating biases.

Simpkin argues that paired comparisons, when properly implemented, can enhance merit-based compensation systems, ensuring fair and legally defensible salary adjustments. The study highlights the potential of computer-aided evaluation tools in modern HR management, making performance-based compensation more efficient and equitable. Ultimately, the research supports the integration of digital decision-making tools to improve traditional employee assessment methodologies.

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