This document discusses compensation management and its components. It defines compensation as monetary and non-monetary value provided to employees in exchange for work. The objectives of compensation include recruiting qualified employees, increasing morale, determining pay, and rewarding performance. Compensation has direct components like base pay and bonuses, and indirect components like insurance and retirement programs. Non-monetary compensation enhances satisfaction and relationships. Factors affecting compensation include the labor market, cost of living, unions, and the organization's compensation policy and ability to pay.