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 motivating potential of pay and other rewards.

11.4 Describe common individual and group pay-for-performance programs.

11.5 Assess common challenges and opportunities of reward systems.