ABSTRACT Managers do not look forward to giving performance reviews and there is no exception to that rule. Every year managers struggle with finding just and fair way to allocate salary increases to their department. They want to find a way that will reward the best performers by given them the largest salary increases for the years. Identifying the best performers is a very subjective task. So, managers are always searching for a way to make this task as objective as possible. This research will utilize the AHP to deal with the performance evaluations and merit increases for a local firm in the state of Indiana. More specifically, the research will help the managers in assigning weights to the most important factors used in the evaluation process.
