Course Code: HR604

Course Title: 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 Contents 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 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 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

1. Introduction to Compensation Management and Reward System

2. Determining Internal and External Alignment Requirements of Compensation

3. Employee Contributions and Pay-forPerformance

Compensation Management & Reward System HR604 (2012-14)

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4. Employee Benefits & Legal Framework for

Wage Fixation

5. Extending the Compensation and Reward Management System Evaluation Criteria:

Component Class Participation

Employee Benefits: Fringe Benefits, Welfare Amenities, and Retirement Benefits, Legal Framework for Wage Fixation, Role of Collective Bargaining in Wage Fixation Compensation of Special Groups, International Pay Systems, Indian Payroll at a Glance, A Glimpse of Payroll Software PayPac, Reward Management

Description

Weight

It will involve attendance, punctuality, attentiveness, responsiveness, proactivity and preparedness in each session. You will be assessed on the basis of these dimensions. There will be announced quizzes of MCQ(s) type and all the quizzes will be considered for the assessment. 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. This will consist of cognition and application based questions, coupled with case analysis. This will comprise case analysis, conceptual and application based questions.

10

Quiz

15

Group Project

15

Mid-term examination End-term examination

20

40

Recommended/ Reference Text Books and Resources: Text Dipak Kumar Bhattacharya (2009), Compensation. (1st Edition), New Delhi: Oxford Univ. Press. Reference Books 1. Milkovich, Newman, & VenkatRatnam (2009), Compensation. (9e), New. Delhi: Tata McGraw. 2. BD Singh (2012), Compensation and Reward Management. (2e), New. Delhi: Excel Books. Web Resources 1. 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. Compensation Management & Reward System HR604 (2012-14) Page 2

SESSION PLAN
Session Date Topic Compensation Definition, The Concept: Society, Stockholders, Managers, Employees Forms of Pay: Cash Compensation - Base/Merit Pay/Cost of Living Adjustments/Incentives/Benefits Wage Theories Requirements: Readings / Cases Learning Outcome To understand the different perspectives to compensation. To understand the different perspectives to compensation. To link compensation strategies with wage theories To appreciate challenges in compensation. To learn tools & techniques of Job Design & Job Evaluation. To practice the art of How to Job Analysis & Evaluation. To appreciate the dynamics of demand and supply of labor To learn how to work-out various components of salary. To analyse and suggest how to manage compensation in critical situation. To appreciate the role performance in compensation. Case: Performance Incentives at GCGL To link performance with pay. To analyse various types of PFP plans in organisation. To develop PFP plans for various levels of employees. To exemplify and relate various issues in PFP.

Strategic Challenges in Compensation

Subject to Preparation of time table and faculty members engagement of classes

Case: Glamorous Internships or House Elves

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

Exercise: Mapping Jobs

External Competitiveness: Labor Demand & Supply

Designing Salary Structure Components of Compensation

Compensation Management & Job Design

Case: Compensation Practices of DimondSoft

10

11

Compensation Management & PMS Performance Pays: Incentives, Bonus Schemes Linking Pay with Performance

12

Types Plans

of

Pay-for-performance

13

Pay-for-performance (PFP)

Excel based exercise

14

Contemporary Issues in Pay-forperformance

Guest Lecture

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15

Employee Benefits: Fringe Benefits, Welfare Amenities, and Retirement Benefits Model of Employee Voluntary Benefits Case: Innovative Design of Employee Benefits at Narmada

16

To analyze the legal framework which governs wage fixation. To evaluate how various benefits work in organisation. To appreciate the role of collective bargaining in wage fixation

17

18

Subject to Preparation of time table and faculty members engagement of classes

19

Legal Framework for Wage Fixation Role of Collective Bargaining in Wage Fixation Continues Legal Framework for Wage Fixation Role of Collective Bargaining in Wage Fixation Compensation of Special Groups

-doTo learn and workout various compensation techniques and strategies of special groups. To appreciate how compensation works internationally. To acquaint with the actual Indian Payroll process. To evaluate how the reward management takes in organisations. To synchronized various practices in organisations

20

International Pay Systems

21

22

Indian Payroll at a Glance A Glimpse of Payroll Software PayPac Reward Management

Web Resource1 Web Resource2 Case: Employee Motivation & Retention Strategies at Microsoft Corporation Power Point Presentation in class Power Point Presentation in class

23 24

Group Presentation Group Presentation

Contact Details: Name of the Instructor: Office Location: Telephone: Email: Teaching Venue: Website: Office Hours: Online Links (Link to Blackboard etc.):

Prof. Abdul Qadir 2nd Floor, Faculty Area, Cabin No.12 0120-4638300 Ext. 381, Mobile: 9891025825 abdul.qadir@jaipuria.ac.in 2nd Floor, Room No. 204 or as notified by Programme Office http://www.jaipuria.ac.in/noida As & when notified http://moodle.jaipuria.ac.in
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