Demonstrate how internal and external talent can be used appropriately to make decisions about compensation.

2. Explain the risks of not using information related to internal talent for compensation decisions.
4. Since employees may differ in terms of their job performance, would it not be more feasible to determine the wage rate for each employee on the basis of his or her relative worth to the organization? Explain.
6. What is a compensation scorecard and how does it help align a company's strategy with its compensation system?
8. Describe the advantages and disadvantages of pay-for-performance programs.
10. Compare and contrast direct and indirect compensation. Provide examples.
12. Explain Equity Theory or Distributive Fairness. Provide examples to demonstrate its possible impact.