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On page 11 in your text, the authors say that employees may see Compensation as a “return in a exchange,” an “entitlement” or a “reward, ” or all three. What do you think?
Compensation is a broad concept although in a business organization perspective, it is mostly regarded as payment for the services rendered by an individual. The concept behind compensation can be strongly associated with the theory of social exchange. The social exchange theory was developed in the 1960’s by social scientists and philosophers to understand workplace behavior, and in this context, the nature of compensation.
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