| LO 12-1 | Discuss how pay influences individual employees, and describe three theories that explain the effect of compensation on individuals. |
| LO 12-2 | Describe the fundamental pay programs for recognizing employees’ contributions to the organization’s success. |
| LO 12-3 | List the advantages and disadvantages of the pay programs. |
| LO 12-4 | Describe how organizations combine incentive plans in a balanced scorecard. |
| LO 12-5 | Discuss issues related to performance-based pay for executives. |
| LO 12-6 | Explain the importance of process issues such as communication in compensation management. |
| LO 12-7 | List the major factors to consider in matching the pay strategy to the organization’s strategy. |