Abstract

Historically, in Mexico, reward management was seen as an administrative function whose only purpose was to pay employees in exchange for their work activities; a transactional process, within the realm of accountants, with a focus on labour and tax laws. Recently, we have more evidence that this role as well as its relationship with other HR functions can be a source of competitive advantage (Vosburgh 2007; Ulrich et al. 2012; Ulrich 2007; and Lawler and Mohrman 2003). Normatively, designing compensation (or reward management) systems must also evolve to fulfil their strategic roles in the modern, sustainable enterprise.