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Course Overview: Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Compensation is the “glue” that binds the employee and the employer together and hence, to motivate employees to work hard and help the business succeed, is a key concern that businesses are constantly seeking answers to. Among the many potential answers, compensation is a key motivator for most people. The course Compensation Management and Reward System begins with an introduction to the concepts and practice of compensation, including strategic compensation planning as well as the development and management of compensation/reward systems, including direct/indirect payments, and employee benefits. Equipping you with the desired knowledge and competencies to plan, design, implement, and manage the key actions related to monetary and non-monetary benefits employees may expect in return to their services towards the organization, this course aims to make you understand and analyse the basic and strategic role of compensation in the overall gamut of HR. The systematic guidelines for identifying and designing compensation systems that attract talents, influence employees’ performances, leverage your expertise in your coming-up career as HR professional. How the compensation is integrated with other HR functions while understanding the implications of laws and legal framework for salary and wages, provide holistic view to you. As an elective course of HR, you are expected to be through with the concepts of other verticals of HR, which might be brought to discussion while formulating and designing salaries, structure, benefits, and legal requirements. Learning Outcomes: After undergoing this course, you will be able to: 1. Appreciate the role of compensation in managing human resources in organizations. 2. Identify the role of internal and external factors affecting worker/executive compensation. 3. Design compensation and reward systems for different levels of employees. Compensation Management & Reward System – HR604 (2012-14) Page 1 Course Code: HR604 Course Title: Compensation Management

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Page 1: Compensation Management & Reward System

Course Overview:Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Compensation is the “glue” that binds the employee and the employer together and hence, to motivate employees to work hard and help the business succeed, is a key concern that businesses are constantly seeking answers to. Among the many potential answers, compensation is a key motivator for most people.

The course Compensation Management and Reward System begins with an introduction to the concepts and practice of compensation, including strategic compensation planning as well as the development and management of compensation/reward systems, including direct/indirect payments, and employee benefits. Equipping you with the desired knowledge and competencies to plan, design, implement, and manage the key actions related to monetary and non-monetary benefits employees may expect in return to their services towards the organization, this course aims to make you understand and analyse the basic and strategic role of compensation in the overall gamut of HR. The systematic guidelines for identifying and designing compensation systems that attract talents, influence employees’ performances, leverage your expertise in your coming-up career as HR professional.

How the compensation is integrated with other HR functions while understanding the implications of laws and legal framework for salary and wages, provide holistic view to you. As an elective course of HR, you are expected to be through with the concepts of other verticals of HR, which might be brought to discussion while formulating and designing salaries, structure, benefits, and legal requirements.

Learning Outcomes:After undergoing this course, you will be able to:1. Appreciate the role of compensation in managing human resources in organizations.2. Identify the role of internal and external factors affecting worker/executive compensation.3. Design compensation and reward systems for different levels of employees.4. Develop and execute payroll process at the work place as industry ready professional.5. Understand compensation strategies with respect to legal framework.

Module Contents1. Introduction to Compensation

Management and Reward System Compensation Definition, The Concept: Society,

Stockholders, Managers, Employees Forms of Pay: Cash Compensation – Base/Merit Pay/Cost of Living Adjustments/Incentives/Benefits, Wage Theories, Strategic Challenges in Compensation

2. Determining Internal and External Alignment Requirements of Compensation

Internal Alignment: Compensation Strategy & Techniques - Hay Model of Job Evaluation, Job Design, Job Analysis, Job Evaluation, External Competitiveness: Labor Demand & Supply, Designing Salary Structure: Components of Compensation and Exercises

3. Employee Contributions and Pay-for-Performance

Compensation Management & PMS, Performance Pays: Incentives, Bonus Schemes, Linking Pay with Performance, Types of Pay-for-performance (PFP) Plans and Exercises on PFP, Contemporary Issues in Pay-for-performance

Compensation Management & Reward System – HR604 (2012-14) Page 1

Course Code: HR604 Course Title: Compensation Management & Reward System

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4. Employee Benefits & Legal Framework for Wage Fixation

Employee Benefits: Fringe Benefits, Welfare Amenities, and Retirement Benefits, Legal Framework for Wage Fixation, Role of Collective Bargaining in Wage Fixation

5. Extending the Compensation and Reward Management System

Compensation of Special Groups, International Pay Systems, Indian Payroll at a Glance, A Glimpse of Payroll Software – “PayPac”, Reward Management

Evaluation Criteria:Component Description Weight

Class Participation It will involve attendance, punctuality, attentiveness, responsiveness, proactivity and preparedness in each session. You will be assessed on the basis of these dimensions.

10

Quiz There will be announced quizzes of MCQ(s) type and all the quizzes will be considered for the assessment.

15

Group Project As a part of group project work, each group would be required to present a PPT presentation on a specific topic of compensation chosen in consultation with instructor. Interviews of HR professionals in the compensation domain will form the basis of data collection, analysis, and recommendations. Before the groups start working on data collection, a synopsis of the work is to be submitted at the end of session number 10 stating the purpose, scope and methodology of the work.

15

Mid-term examination

This will consist of cognition and application based questions, coupled with case analysis.

20

End-term examination

This will comprise case analysis, conceptual and application based questions.

40

Recommended/ Reference Text Books and Resources:

TextDipak Kumar Bhattacharya (2009), Compensation. (1st Edition), New Delhi: Oxford Univ. Press.

Reference Books1. Milkovich, Newman, & VenkatRatnam (2009), Compensation. (9e), New. Delhi: Tata McGraw.2. BD Singh (2012), Compensation and Reward Management. (2e), New. Delhi: Excel Books.

Web Resources1. http://payroll.naukrihub.com/compensation - This is an excellent web portal which gives in depth

knowledge of different aspects of compensation covering Indian industry scenario as well.

2. http://www.paypac-software.com/PayPacDemo.htm - You can download the payroll demo software “paypac” to experience it on real-time basis. This will leverage your learning for understanding the working of payroll in an organization.

3. http://www.managementstudyguide.com/compensation-management.htm - This link will provide you all the basic concepts regarding compensation and benefits.

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SESSION PLANSession Date Topic Requirements:

Readings / CasesLearning Outcome

1

Subject to Preparation of time table and faculty member’s engagement of classes

Compensation Definition, The Concept: Society, Stockholders, Managers, Employees

To understand the different perspectives to compensation.

2 Forms of Pay: Cash Compensation - Base/Merit Pay/Cost of Living Adjustments/Incentives/Benefits

To understand the different perspectives to compensation.

3 Wage Theories To link compensation strategies with wage theories

4 Strategic Challenges in Compensation

Case: Glamorous Internships or House Elves

To appreciate challenges in compensation.

5 Internal Alignment: Compensation Strategy & Techniques - Hay Model of Job Evaluation, Job Design, Job Analysis, Job Evaluation

To learn tools & techniques of Job Design & Job Evaluation.

6 Job Analysis, Job Evaluation, & Skill Analysis

Exercise: Mapping Jobs To practice the art of “How to Job Analysis & Evaluation.

7 External Competitiveness: Labor Demand & Supply

To appreciate the dynamics of demand and supply of labor

8 Designing Salary Structure

Components of Compensation

To learn how to work-out various components of salary.

9 Compensation Management & Job

Design

Case: Compensation Practices of DimondSoft

To analyse and suggest how to manage compensation in critical situation.

10 Compensation Management & PMSPerformance Pays: Incentives, Bonus Schemes

To appreciate the role performance in compensation.

11 Linking Pay with Performance Case: Performance Incentives at GCGL

To link performance with pay.

12 Types of Pay-for-performance Plans

To analyse various types of PFP plans in organisation.

13 Pay-for-performance (PFP) Excel based exercise To develop PFP plans for various levels of employees.

14 Contemporary Issues in Pay-for-performance

Guest Lecture To exemplify and relate various issues in PFP.

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Subject to Preparation of time table and faculty member’s engagement of classes

15 Employee Benefits: Fringe Benefits, Welfare Amenities, and Retirement Benefits

To analyze the legal framework which governs wage fixation.

16 Model of Employee Voluntary

Benefits

Case: Innovative Design of Employee Benefits at Narmada

To evaluate how various benefits work in organisation.

17 Legal Framework for Wage Fixation Role of Collective Bargaining in Wage Fixation Continues…

To appreciate the role of collective bargaining in wage fixation

18 Legal Framework for Wage Fixation Role of Collective Bargaining in Wage Fixation

-do-

19 Compensation of Special Groups To learn and work-out various compensation techniques and strategies of special groups.

20 International Pay Systems To appreciate how compensation works internationally.

21 Indian Payroll at a GlanceA Glimpse of Payroll Software – “PayPac”

Web Resource1

Web Resource2To acquaint with the actual Indian Payroll process.

22 Reward Management Case: Employee Motivation & Retention Strategies at Microsoft Corporation

To evaluate how the reward management takes in organisations.

23 Group Presentation Power Point Presentation in class To synchronized

various practices in organisations24 Group Presentation Power Point

Presentation in class

Contact Details:Name of the Instructor: Prof. Abdul QadirOffice Location: 2nd Floor, Faculty Area, Cabin No.12Telephone: 0120-4638300 – Ext. 381, Mobile: 9891025825Email: [email protected] Venue: 2nd Floor, Room No. 204 or as notified by Programme OfficeWebsite: http://www.jaipuria.ac.in/noidaOffice Hours: As & when notifiedOnline Links (Link to Blackboard etc.): http://moodle.jaipuria.ac.in

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