Fundamentals of Human Resources Management

5

Compensation

Learning Objectives By the end of this chapter, you should be able to: • Define the characteristics of an effective compensation program. • Write effective generic and specific job descriptions. • Conduct position evaluations. • Differentiate between and among various compensation programs.

INTRODUCTION

Joanna and Marcus work as senior compensation analysts in the HR department of a mid-sized bank. Lucy, the VP of compensation, has asked them to put aside whatever they’re working on to conduct a thorough review of the bank’s compensation program. The reason: The bank has just been hit with a salary discrimination class action ...