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





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Noe, HRM, 9GEOnline Learning Center

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