Learning Objectives

After reading and studying this chapter, you should be able to do the following:

11.1 Explain the conceptual foundation of compensation and reward systems.

11.2 Describe how to develop internally, externally, and individually equitable and legally compliant pay structures.

11.3 Describe the development of a pay structure.

11.4 Identify basic principles underlying person-based pay structures.

11.5 Describe the philosophy and challenges of executive pay structures.

11.6 Evaluate issues of pay administration such as compression and pay transparency.