Conceptual and theoretical understanding of economic theory related to compensation management (wage concepts and wage theories). Employees satisfaction and motivation issues in compensation design. Establishing internal, external and individual equally. Strategic importance of variable day-determination of inter and intra industry compensation differentials. Individual and group incentives. Dearness allowance concept-emergence & growth in India. Role of fringe benefits in reward systems retirement plans including VRS/golden handshake schemes. Executive compensation. Compensation systems in multinational companies and it companies including ESOP. Collective bargaining strategies-long term settlements-cases of productivity settlements-exercises on drawing up 12 (3) and 18(1) settlements. Emerging trends in IR due to LPG.