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

11-1 Identify the components of a compensation system and describe how expectancy and equity theories apply to compensation.

11-2 Identify the seven basic issues that make up the organization’s compensation strategy.

11-3 Discuss the three major provisions of the FLSA and the penalties for misclassification of employees.

11-4 Briefly describe the concept of comparable worth and highlight the other legal issues in compensation.

11-5 Identify the three types of job evaluation and discuss whether they are more objective or subjective in form.

11-6 Briefly describe the concepts of job structure, pay levels, product market competition, and labor market competition.

11-7 Briefly describe the concept of a pay structure, including broadbanding and delayering.

11-8 Briefly discuss the issues of independent contractors versus employees and the problem of the gender–wage gap.