This document discusses reward and compensation in human resource management. It defines reward as strategies and policies to fairly and consistently compensate employees according to their value. Compensation includes salaries, wages, and benefits paid to employees in exchange for their services. The goals of an effective reward and compensation system are to attract, retain, and motivate high-performing employees by aligning compensation with performance evaluations and business goals. It also outlines different types of rewards and compensation elements like salaries, benefits, incentives, and allowances that make up an employee's total compensation package.