In many organizations, compensation is the single largest budget component. A 1% difference in compensation could mean hundreds of thousands dollars saved or spent without gain. The design of compensation systems also affects organizations' attractiveness to job seekers and the behaviour of current employees. This course provides students with an understanding of the principles, processes, issues, and techniques involved in establishing compensation and reward programs in organizations within a framework of fairness and equity. Compensation will be looked at from the perspective of base pay, benefits, and incentive pay. As well, students will be introduced to the relationship between motivation theories and effective remuneration and reward programs. The course will focus on the major components in developing an effective compensation and rewards program such as legislation, principles of equity and fairness, job evaluation, compensation surveys, benefits, and incentives. Current events in relation to compensation and rewards will be explored.