Compensation is a key factor in attracting and keeping the best employees and ensuring competitive edge in this increasingly competitive world. Compensation and reward system plays a vital role in a business organisation. This book discusses in detail about the compensation management, different economic theories, concept of performance management and wage and pay structures in the organizations. Managing compensation in international context is a very complex and crucial activity of Multinational Corporations (MNCs). This book provides an in-depth knowledge about the employment and taxation laws, social security systems, customs, and cost of living indices of different countries. To make it more reader-friendly, some special features have been included in the book. They are: 1. Easy and comprehendible examples of compensation plans. 2. Company examples which elaborate effective compensation strategy. 3. Summarised version of a number of significant legislations related to compensation and employee welfare (in the Indian context). 4. Summarised version of consumer price index number for ready reference. 5. Compensation management with special reference to India.