How are annual raises decided?
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The Unwritten Rule: Why are annual raises often small?
They're set from a fixed merit budget split across everyone. Leaders set a merit pool; managers divide it, so a great year still yields a modest raise. Source: Wikipedia – Merit pay
Who Decides: Who splits the pool?
Managers, within guidelines from compensation. Managers allocate within limits, often with guidance by rating. Source: Wikipedia – Merit pay
How to Play It: When should you ask?
Before budgets are set, not at the review. By review time the money is allocated. Ask when the pool is being planned. Source: Wikipedia – Merit pay