Chapter 10
Compensation Strategies
Learning Objectives
- Understand the importance of compensation to strategic human resources management
- Understand basic theories underlying pay systems
- Explain external, internal, and employee equity
- Understand the role that labor markets play in determining compensation
- Explain how to determine the relevant labor market for a specific job
- Discuss what compensable factors are and how they relate to job evaluation
Employees are complex and motivated by many factors. An employee's performance is often determined by the levels and interaction of ability and motivation. Motivation is the desire within a person to act in a particular way. Employees are motivated by both intrinsic and extrinsic rewards. Intrinsic ...
