In order to avoid the sensitive issues surrounding
salaries, some organizations have taken a proactive approach and set forth
specific salary "steps" within job classifications which are predetermined. This
approach enables managers simply to move employees from one step to the next. This is commonly done in public sector jobs where salary information is published and public information (although not the salaries of individual employees). This paper examines the problem which arose in a private sector institution, Pierce University library, where the library supervisor had misperceptions regarding salary
increases. The paper identifies the problem, analyzes it and offers alternatives to the present salary system. It also recommends that the university adopt both the strategy of implementing a diversity program and develop guidelines to help managers and supervisors determine merit increases and who is eligible for them.