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Designing a Pay Structure: A Case Study and Integrated Exercises

By Lisa A. Burke, Ph.D., SPHR   

Compensation is a critical area of human resource (HR) management, and one that can greatly affect employee behavior. To be effective, compensation must be perceived by employees as fair, competitive in the market, accurately based, motivating and easy to understand. This case is rated as slightly challenging and requires familiarity with and use of the Internet and Microsoft Excel. Instructors can make the case and associated exercises less challenging by eliminating certain tasks assigned in the case, or may increase the difficulty by adding other relevant tasks and questions. Teaching notes accompany the case. Instructors who have previously taught compensation courses, are familiar with the Internet and Excel, have work experience with pay systems, or who conduct research in compensation area may find the case easier to facilitate. An instructor's manual and a student workbook are available to download.

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