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This paper highlights the importance of using an experiential approach to teaching compensation management. Using this approach, a multi-phase exercise was designed to help students in understanding the process of developing a job-based pay structure. This exercise enriches the classroom experience of students and equips them to transfer their classroom learning to the real world. An assessment of student learning was also made using qualitative and quantitative methodology. Results from the assessment of student learning indicate a significant increase in student learning after the students completed this exercise. All or different parts of this exercise can be used by university professors to supplement their teaching of various concepts in human resource management and compensation management
