Strategic Compensation: A Human Resource Management Approach

Strategic Compensation A Human Resource Management Approach This page intentionally left blank Strategic Compensation A Human Resource Management Approach Joseph J. Martocchio University of Illinois at Urbana-Champaign NiNth EditioN Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo In Loving Memory of Orlando “Lundy” Martocchio Vice President, Business Publishing: Donna Battista Editor-in-Chief: Stephanie Wall Senior Acquisitions Editor: Kris Ellis-Levy Program Manager Team Lead: Ashley Santora Program Manager: Sarah Holle Editorial Assistant: Lauren Russell Vice President, Product Marketing: Maggie Moylan Director of Marketing, Digital Services and Products: Jeanette Koskinas Executive Product Marketing Manager: Anne Fahlgren Field Marketing Manager: Lenny Ann Raper Senior Strategic Marketing Manager: Erin Gardner Product Marketing Assistant: Jessica Quazza Project Manager Team Lead: Jeff Holcomb Project Manager: Meghan DeMaio Operations Specialist: Diane Peirano Creative Director: Blair Brown Senior Art Director: Janet Slowik Interior and Cover Designer: Integra Software Services Pvt. Ltd. Cover Image: Cowardlion/Shutterstock VP, Director of Digital Strategy & Assessment: Paul Gentile Manager of Learning Applications: Paul Deluca Digital Editor: Brian Surette Digital Studio Project Manager: Monique Lawrence Full-Service Project Management and Composition: Integra Software Services Pvt. Ltd. Printer/Binder: RR Donnelley Cover Printer: Phoenix Color Text Font: 10/12, Times LT Pro Roman Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services. The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified. Microsoft® Windows®, and Microsoft Office® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Copyright © 2017, 2015, 2013 by Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, stor