Chapter 10: Managing Compensation

Chapter 10: Managing Compensation
Challenges

After reading this chapter, you should be able to deal more effectively with the following challenges:

1. Identify the compensation policies and practices that are most appropriate to a firm.
2. Weigh the strategic advantages and disadvantages of different compensation options.
3. Establish a job-based compensation scheme that is internally consistent and linked to the labour market.
4. Understand the difference between a compensation system in which employees are paid for the skills they use and one in which they are paid for the job they hold.
5. Make compensation decisions that comply with the legal framework.