Strategic Compensation: A Human Resource Management Approach, 10th edition

Published by Pearson (February 1, 2019) © 2020

  • Joseph J. Martocchio University of Illinois at Urbana-Champaign

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For strategic compensation courses.

Connecting art and science in compensation practices

Strategic Compensation: A Human Resource Management Approach demonstrates the art and science of compensation practice and its role in a company's competitive advantage. Through focused activities and supporting course material, students build a solid foundation in the subject.

The 10th Edition focuses on compensation context, criteria, design, and challenges along with employee benefits at home and around the world. With this text, students gain the knowledge and skills needed to become successful compensation professionals in the field.

Hallmark features of this title

  • A flexible format (consisting of 15 chapters adaptable to a 10- or 15-week schedule) covers topics based on semester schedules.
  • Company examples from Apple, Boeing and Uber bring compensation practice discussions to life.
  • Examples showcase leading-edge knowledge and practices, including definitive proxy statements, point factor leveling, and the CEO pay-ratio rule.
  • Watch It boxes highlight short videos of companies' experience with particular elements of compensation or HR-related issues.
  • Compensation in Action boxes illustrate how line managers, employees and compensation professionals interact to put compensation concepts into practice.

New and updated features of this title

  • UPDATED: Material highlights evolving compensation practices, statistics and business professionals' perspectives.
  • NEW: End-of-Chapter Ethics Dilemmas sections focus on individual decision making and behavior as well as the impact of ethical choices on employee welfare.
  • NEW: FYI boxes provide tidbits of info from survey research and extensive databases (e.g., employment stats) that illuminate trends, opinions and uses of specific compensation practices.
  • NEW: Working Together boxes let students collaborate through sharing ideas, listening to others' ideas, and coming up with a cohesive team response to the assignment.
  • ~50% NEW: Crunch the Numbers data-driven exercises have students analyze data about compensation issues, bringing to light key skills they'll need in the field.
  • 50% NEW: End-of-chapter cases highlight real-world compensation issues and are accompanied by questions to facilitate class discussion or for homework assignment.

Features of MyLab Management for the 10th Edition

  • Chapter Warm-Up Assessments help you hold your students accountable for learning key concepts in each chapter.
  • NEW: Pearson eText is an easy-to-use digital textbook, available with MyLab, which lets students read, highlight and take notes all in one place, even when offline.
  • Personal Inventory Assessments is a collection of online exercises designed to promote self-reflection and engagement for students. It enhances their ability to connect with concepts taught in principles of management, organizational behavior, and HR management classes.
  • Building Strategic Compensation Systems Projects are experiential cases that have students work in teams to develop a compensation plan for a company.
  • Videos explore multiple business topics related to the theory students are learning. Exercise Quizzes assess students' comprehension of the concepts in each video.
  • Crunch the Numbers help students sharpen their problem-solving skills through the analysis of numerical data, creating the foundation for quantifying compensation concepts and practices.

PART 1: SETTING THE STAGE FOR STRATEGIC COMPENSATION
1. Strategic Compensation: A Component of Human Resource Systems
2. Contextual Influences on Compensation Practice

PART 2: BASES FOR PAY
3. Traditional Bases for Pay: Seniority and Merit
4. Incentive Pay
5. Person-Focused Pay

PART 3: DESIGNING COMPENSATION SYSTEMS
6. Building Internally Consistent Compensation Systems
7. Building Market-Competitive Compensation Systems
8. Building Pay Structures that Recognize Employee Contributions

PART 4: EMPLOYEE BENEFITS
9. Discretionary Benefits
10. Legally Required Benefits

PART 5: CONTEMPORARY STRATEGIC COMPENSATION CHALLENGES
11. Compensating Executives
12. Compensating the Flexible Workforce: Contingent Employees and Flexible Work Schedules

PART 6: COMPENSATION ISSUES AROUND THE WORLD
13. Compensating Expatriates
14. Pay and Benefits outside the United States

Epilogue: Challenges Facing Compensation Professionals

About our author

Joseph J. Martocchio's interest in the human resource management (HRM) field began while he was a junior at Babson College and in compensation, particularly, while he was a first-year graduate student at Michigan State University. Martocchio found himself wanting to practice in the field as well as become a university professor and researcher. He pursued both professional desires starting with employment at Cameron and Colby (a reinsurance company) in Boston and General Electric's Aerospace business group in Valley Forge, PA.

Martocchio advanced his education in the HRM field by earning a master's degree and PhD degree at Michigan State University. His master's degree enabled him to build an even stronger foundation in practice and his doctoral degree provided him with the skills to conduct scholarly research and teach college-level courses. Since earning his graduate degrees, Martocchio has been a professor in the School of Labor and Employment Relations at the University of Illinois, Urbana-Champaign and assumed administrative roles as a Provost Fellow, Associate Dean for Academic Affairs, and Interim Dean. All the while, he has taught a variety of courses in the HRM field. These include compensation systems, employee benefits, employment systems (HRM and labor relations), HR planning and staffing, and statistics. He also teaches the compensation and statistics courses online. For many years, Martocchio served as the faculty advisor to the student chapter of the Society for Human Resource Management at the University of Illinois during which time students earned Merit Awards and Superior Merit awards on multiple occasions.

As a researcher, Martocchio has studied a variety of topics that include employee absenteeism, employee training and development, compensation systems, employee benefits, and generational diversity. His work appears in leading scholarly journals such as Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Management, and Personnel Psychology. He received the Ernest J. McCormick Award for Early Career Contributions from the Society for Industrial and Organizational Psychology (SIOP), and was subsequently elected as a Fellow in both the American Psychological Association and SIOP. Following the attainment of this recognition, he served as the Chair of the HR Division of the Academy of Management as well as in various other leadership roles within that organization.

In 2018, a study in the Academy of Management Learning and Education revealed that Martocchio is in the top 1% of the most influential HRM authors out of a total of 9,744 people. Besides writing scholarly articles and Strategic Compensation: A Human Resource Management Approach, he has 2 additional sole-authored textbooks: Human Resource Management (Pearson Higher Education), 15th edition, and Employee Benefits: A Primer for Human Resource Professionals (McGraw-Hill), 6th edition.

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