The Pay Model and Pay Strategy is key to understanding how to design a compensation system that can help an organization achieve success and sustain competitive advantage. How people are paid affects their behaviors at work. Critical in compensation design is thoughtful strategic alignment.

Instructions:

Using the first two chapters of the Compensation textbook, videos, and additional resources, answer the questions completely. • Describe the objectives of the pay model. Give an example of each. • How do the objectives set the standards to judge success?

Explain why one company can have different pay objectives for differentbusiness units.• Define the four (4) policy choices in the pay model. How do the policies createguidelines to manage pay? Give examples of