In Chapter 1, compensation was defined as "all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship" (Gerhart & Newman, 2020, p. 12).

Let's examine this "all forms" concept in detail. Review Exhibit 1.5 closely, and re-read the section on "Forms of Pay."

When I teach BUS 421 Human Resource Management, I often take the position in class that most hourly employees think exclusively of their compensation as "base pay" (which I contend is the same as take-home pay); that most hourly employees do not think about bonuses, incentives, benefits, or recognition when they think about their compensation.

Discussion Question:

A. Is your professor correct? What are your views on this?

B. Compare the concepts of Total Returns, Total Compensation, and Relation Returns.

C. Discuss how your answer to "B" above related to your answer to "A" above.