Multiple criterion function goal programming applied to managerial compensation planning

Abstract In this paper a goal programming model is applied to the problem in wage and salary administration of balancing internal concerns for equity against eternal market prices in the design of managerial compensation structures. Instead of solving the goal program in a lexicographic fashion, each pre-emptive level is used to define a separate criterion function. Then an ideal point/Tchebycheff metric approach is used to explore the space of tradeoffs among the different goal levels until a final solution is obtained.