This textbook is well suited to a variety of students, including undergraduate and master’s degree students studying compensation.

　　For all business majors, Martocchio provides a framework for understanding strategic compensation that can be used by all business professionals.

　　Joe Martocchio, University of Illinois at Urbana-Champaign

Part I:Setting the Stage for Strategic Compensation 1
Chapter 1　Strategic Compensation: A Component of Human Resource Systems 1
Chapter 2　Strategic Compensation in Action: Strategic
Analysis and Contextual Factors 33
Chapter 3　Contextual Influences on Compensation Practice 63

Part II:Bases for Pay 93
Chapter 4　Traditional Bases for Pay: Seniority and Merit 93
Chapter 5　Incentive Pay 132
Chapter 6　Person-Focused Pay 167

Part III:Designing Compensation Systems 193
Chapter 7　Building Internally Consistent Compensation Systems 193
Chapter 8　Building Market-Competitive Compensation Systems 234
Chapter 9　Building Pay Structures That Recognize Individual Contributions 271

Part IV:Employee Benefits 309
Chapter 10　Legally Required Benefits 309
Chapter 11　Discretionary Benefits 331

Part V:Contemporary Strategic Compensation Challenges 372
Chapter 12　International Compensation 372
Chapter 13　Compensating Executives 409
Chapter 14　Compensating the Flexible Workforce:
Contingent Employees and Flexible Work Schedules 443

Glossary 474　
Author Index 488
Subject Index 491